Bitcoin is weakening in the $73,000 range. The move is seen as stemming from growing worries about a rate hike after U.S. consumer inflation topped market expectations.
As of 8:35 a.m. on the 11th, Bitcoin was trading at $73,615.5 on CoinMarketCap, a global crypto market tracker, down 2% from 24 hours earlier. It fell 5.39% from a week ago.
Major altcoins (cryptocurrencies other than Bitcoin) are also falling. Ether was down 3.84% from 24 hours earlier at $2,047.76. Ripple (XRP) slipped 3.91% to $1.05, and Solana was down 4.05% at $82.99.
Higher-than-expected U.S. inflation battered risk appetite. According to the Bureau of Labor Statistics, the October consumer price index (CPI) rose 0.4% from the previous month, while core CPI, which excludes food and energy, climbed 0.3%. Both topped market forecasts of 0.3% and 0.2%, respectively.
Comments from Federal Reserve officials also weighed on markets. Fed Governor Christopher Waller, speaking at a Bank of England conference in London on the 10th (local time), said he supports a December rate increase even if inflation cools. He added that if inflation runs hotter than expected, a 0.5 percentage point hike could be considered.
In the bond market, Treasury yields jumped as investors priced in the possibility of rate hikes. The U.S. 10-year Treasury yield surged to 4.996%, near 5%. As yields on safe-haven Treasurys rise, cryptocurrencies become less attractive, increasing downward pressure on prices. Some say that if the 10-year tops 5%, Bitcoin could slip below $73,000.
