Crypto is “reed” again today, on November 11, which extended a downturn that has now lasted through most of the past week.

Bitcoin is trading around $73,600 after briefly falling toward $72,700 overnight. Ethereum is near $2,050, XRP is around $1.06 and Solana is close to $83, with all four still well below their levels from a week ago.

The latest leg lower came after hotter-than-expected U.S. inflation data strengthened expectations that the Federal Reserve will raise interest rates again in December.

What you'll learn 👉

Hot CPI Put More Pressure on Bitcoin

October U.S. CPI rose 0.4% month over month, above the 0.3% forecast.

Core CPI, which excludes food and energy, increased 0.3% for a third straight month. Economists had expected only 0.2%.

That was enough to change the market’s view of the Fed.

Governor Christopher Waller had already said he supported a 25-basis-point rate increase in December and that a 50-basis-point move should be considered if core CPI came in at 0.3% or higher.

That is exactly what happened.

THE BLOCK: Bitcoin bitcoin:native fell below $74,000 as U.S. inflation came in slightly hotter than expected, with October CPI rising 0.4% against forecasts of 0.3%. Core CPI also exceeded expectations, increasing 0.3% versus 0.2% forecast, amid concerns over further Federal Reserve interest rate hikes.

Markets briefly priced roughly a 15% probability of a 50-basis-point hike, while expectations for additional increases into 2027 also moved higher.

For crypto, that is a difficult backdrop.

Higher rates and higher Treasury yields make risk assets less attractive and increase the opportunity cost of holding speculative assets such as Bitcoin and altcoins.

ETF Outflows Are Removing Another Source of Demand

The market was already weak before the CPI report.

U.S. spot Bitcoin ETFs recorded about $201 million in net outflows on November 9, while Ethereum ETFs lost another $185 million.

That marked a third consecutive outflow session for both groups.

The timing matters.

Bitcoin has been losing support for several days, and repeated ETF withdrawals mean less institutional buying is available to absorb selling.

BTC is now down close to 5% over the past week and roughly 12% over the past month.

Ethereum and large altcoins have generally performed even worse.

The Market Has Been Weak for Most of the Past Week

This is not a one-day CPI crash.

Crypto has been declining for most of the past seven days.

Earlier in the week, more than $1 billion in leveraged positions were liquidated as Bitcoin, Ethereum and other large cryptocurrencies broke important support levels.

Crypto market in Q4: $BTC : -14.5% $ETH: -26% $DOGE: -30.5% $LINK: -30.6% $XRP: -31.7% $SOL: -32.2% $ONDO: -32.9% $SUI: -33.5% $PUMP: -45% $TRUMP: -52% https://t.co/j4SQEgz0s3

Since then, every rebound has struggled to hold.

The CPI report simply added another bearish catalyst to a market that was already dealing with weak ETF demand, previous liquidation damage and poor risk appetite.

That helps explain why altcoins remain under heavier pressure than Bitcoin.

XRP is down more than 4% today near $1.06, Solana is losing almost 4% around $83, and Ethereum is down close to 3% near $2,050.

What Happens Next?

Bitcoin’s immediate support remains around $72,500-$73,000.

A sustained loss of that area would bring $70,000 back into focus.

On the upside, BTC needs to reclaim roughly $75,000-$76,000 before the short-term picture starts improving.

The larger issue, however, is still macro.

As long as inflation remains hotter than expected and markets continue pricing additional Fed hikes, crypto is likely to struggle to build a lasting recovery.

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