Bitcoin Slips to $73,500 as CPI Data Strengthens Case for Bigger Fed Hike

On Tuesday morning, the price of bitcoin was around $73,500, having fallen roughly 1% in the past day and sitting some $32,000 lower than a year earlier. The drop followed an inflation report that came in hotter than anticipated, reigniting concerns the Federal Reserve might implement a larger rate increase, based on data from Bitcoin Magazine Pro.

The October U.S. consumer price index rose 0.4%, above the expected 0.3%. Core CPI, which excludes food and energy, climbed 0.3% versus a prediction of 0.2%.

In the minutes before the 8:30 a.m. ET release, bitcoin was near $74,300. It fell to roughly $73,400 right after the print, briefly dipping below Monday's low of $73,477 before settling in the upper $73,000s.

JUST IN: U.S. CPI inflation comes in at 0.4% MoM, higher than expectations

Bitcoin falls below $74,000 on the news.

— Bitcoin Magazine (@BitcoinMagazine) November 10, 2026

On the month, food prices gained 0.5%, energy 0.7%, and gasoline 1.0%. Housing costs were up 0.3%.

This report will not include an annual inflation figure. The government shutdown in October 2025 meant the Bureau of Labor Statistics could not collect a full set of prices, so there is no comparable number. Before the release, Bank of America estimated headline annual inflation at about 3.8% and core at roughly 2.7%.

Fed hike bets build around the bitcoin price

Bond traders were first to act. After the print, yields on two- to five-year Treasuries rose at least 10 basis points, and traders increased bets on a 50-basis-point hike at the Fed's December 9 meeting.

That matched the scenario Fed Governor Christopher Waller had outlined hours earlier. He said he is "leaning toward" a December increase and would back "more robust action" if inflation came in hotter than expected.

"In that case, I believe a 50 basis point hike in the policy rate should be considered at the December meeting," Waller said. "Hiking only 25 basis points would put our credibility at risk, a risk I am not eager to take."

Even before the data, markets had mostly priced in a quarter-point increase. Higher rates make it costlier to own an asset with no yield, a calculation that has been limiting bitcoin since Friday's strong jobs report.

Bitcoin had already been losing ground overnight. It dropped around 1.4% from midnight UTC before the data, even as Asian stocks rallied. South Korea's Kospi rose 4.39% and Japan's Nikkei 225 added 2.87%, while oil continued to fall after President Donald Trump called further strikes on Iran "highly unlikely."

Stock futures were mixed before the release. Dow futures gained 156 points (0.3%), while Nasdaq-100 futures slipped 0.4% after Monday's rally gave the S&P 500 its best day since April 8.

Commodities also lost ground. West Texas Intermediate crude traded near $84 a barrel — its lowest since late August — and gold slipped just over 1% to below $4,100 an ounce.

ETF outflows leave the bitcoin price exposed

Fund demand has not softened the drop. On Monday, U.S. spot bitcoin ETFs saw outflows of $201 million, led by $213.2 million leaving BlackRock's iShares Bitcoin Trust (IBIT), its seventh consecutive session of redemptions. That continues even as BlackRock reports record demand to swap coins into IBIT in kind.

Since peaking above $87,000 in early October, the bitcoin price has eased lower as concerns about artificial intelligence weighed on Wall Street and ETF buyers stepped away.

Overnight, ether fell about 1.4% to near $2,100, while U.S. spot ether ETFs lost $184.6 million on Monday.

Analysts pointed to $73,000 as a critical level. A daily close below that could open the path to $70,000, while returning to $80,000 would indicate stronger demand.

Producer price data is due Friday, and minutes from the Fed's October meeting arrive Nov. 18. Both will help determine whether traders keep their bets on a half-point hike or cut them.

As of this writing, bitcoin trades near $73,500.