Bitcoin and major cryptocurrencies declined on Tuesday, November 10, as stronger-than-expected US inflation reinforced expectations of another Federal Reserve interest rate increase in December, adding pressure to digital assets already struggling with regulatory uncertainty.


The selloff reversed Monday's modest recovery, with investors remaining cautious following last week's sharp losses.


Price overview


As of 18:46 GMT, bitcoin traded at $74,201.04, down 0.97%, after moving between $74,028.95 and $75,336 during the session.


Ethereum traded near $2,082, declining approximately 2.2%, while Solana fell approximately 3.5% to $84.28.


XRP declined approximately 3.4% to $1.064.


US inflation strengthens rate hike expectations


October's US consumer price index rose 0.4% month-on-month, exceeding expectations of 0.3%, while core inflation increased 0.3%.


The figures reinforced expectations that the Federal Reserve will raise interest rates again in December.


Federal Reserve Governor Christopher Waller had earlier indicated support for a quarter-point increase, while leaving open the possibility of a larger adjustment if inflation remained elevated.


Regulatory uncertainty weighs on cryptocurrencies


Digital assets also faced pressure from concerns about tighter US cryptocurrency regulation following last week's congressional elections.


Security concerns surrounding the cryptocurrency industry have further weakened investor confidence, encouraging traders to reduce exposure to speculative assets.


Bitcoin remains below $75,000


Bitcoin's inability to sustain Monday's recovery has brought attention back to the $74,000 level, with selling pressure extending across major alternative cryptocurrencies.


Ethereum and Solana suffered larger percentage declines, reflecting continued weakness beyond the largest cryptocurrency.


Market outlook


Bitcoin faces immediate support around $74,000, followed by $73,600, while resistance stands near $75,300.


A sustained recovery above $75,000 could improve short-term sentiment, although expectations of tighter US monetary policy remain a significant obstacle to renewed buying.