Bitcoin Slips Below $73,000, Its Weakest Level Since August, as Hot CPI Puts a December Fed Hike on the Table

Crypto
Written by Methodical Millions
Colourful editorial illustration of a glowing orange Bitcoin coin sinking past a red downward trend line on a dark navy grid, with a glowing red thermometer and a red upward interest-rate arrow beside it

October prices rose 0.4%, core inflation beat forecasts again, and traders now see a December rate hike as close to certain. Bitcoin, which sat out Monday's stock rally, is taking the hit.

By Methodical Jon | Nov 10, 2026

Bitcoin (BTC) fell below $73,000 USD on Tuesday, November 10th 2026, after a hotter-than-expected U.S. inflation report pushed traders to bet on a December interest rate hike from the Federal Reserve. The largest cryptocurrency is at its weakest level since about August 20, according to CoinDesk, and Coinbase data shows an intraday low near $72,640 USD.

What happened

The consumer price index rose a seasonally adjusted 0.4% in October, the Bureau of Labor Statistics said Tuesday morning. Economists polled by Dow Jones expected 0.3%, per CNBC. Core CPI, which strips out food and energy, rose 0.3% against a 0.2% forecast.

Headline inflation did cool from September's 0.6% as energy costs eased. But core prices have now risen 0.3% for three straight months, Reuters reported, a sign that price pressure is spreading. The BLS didn't publish a yearly inflation rate, because last year's government shutdown stopped it from collecting data.

The timing made it worse. Hours before the release, Fed Governor Christopher Waller said in London that a core reading around 0.3% would put a bigger move on the table. "I believe a 50 basis point hike in the policy rate should be considered at the December meeting," he said, per CNBC. "Hiking only 25 basis points would put our credibility at risk."

How markets reacted

  • Rate bets jumped. Traders now fully price a quarter-point hike at the Fed's December 8-9 meeting, and odds of a half-point hike rose from about zero to roughly 11% to 15% during the morning, according to CNBC and Reuters, citing CME FedWatch.
  • Bonds sold off. The 2-year Treasury yield rose more than 20 basis points to about 4.755%, and the 10-year jumped to around 4.95%, CNBC reported.
  • Crypto slid. Ether traded near $2,020 USD at midday, down from about $2,080 USD earlier in the morning, per Investing.com and Coinbase prices. CoinDesk said ether, XRP and solana were down closer to 6% over 24 hours.

Context: Bitcoin already had a flow problem

Bitcoin was weak before the CPI print. On Monday the S&P 500 had its best session since April, but bitcoin barely moved, CoinDesk noted, breaking a weeks-long habit of trading in step with tech stocks.

The money leaving the ETFs explains part of it. U.S. spot bitcoin ETFs lost another $201 million USD on Monday, according to both CoinDesk (citing Farside Investors) and Investing.com (citing SoSoValue). That follows more than $1.2 billion USD of outflows last week. Investing.com also points to regulatory uncertainty under a Democrat-led Congress after the midterms.

The Fed's last move was a hold. At its October meeting, officials voted 10-2 to keep the benchmark rate at 3.75% to 4%, per CNBC.

Why it matters

Bitcoin is often sold as an inflation hedge. Today shows the catch: in the short run it trades like a risk asset that depends on cheap money. Hotter inflation means higher rates, and higher yields on safe Treasuries make a coin that pays nothing look less attractive. When ETF buyers are already pulling out, there's no one to absorb the selling.

It also changes the calendar. If the Fed hikes in December, and especially if it goes 50 basis points, the market has to price a tighter path into 2027. Goldman Sachs Asset Management's Lindsay Rosner told CNBC that "stubborn inflation means we cannot rule out further hikes in 2027."

The money lesson

1. "Hedge" depends on the time frame. An asset can protect purchasing power over years and still drop on a hot inflation print. Know which one you're buying it for.

2. Watch rates, not just prices. The 2-year yield moved more than 20 basis points in a morning. For crypto, stocks and your own borrowing costs, the rate path is the story.

3. Follow the flows. ETF redemptions told you bitcoin was weak before today's data did. Supply and demand show up in the numbers early.

4. Don't use leverage into data days. CPI mornings can swing fast. Size positions so a surprise can't force you to sell.

For the basics on why prices rise and how it hits your money, listen to Episode 61 - Inflation and the Economy. It's the right primer for a day when one inflation number moved everything from bonds to bitcoin.

What to watch

  • Friday's wholesale inflation data. CNBC says the producer price index could shape the Fed's next move.
  • Fed speakers. Will more officials join Waller in talking about 50 basis points?
  • ETF flows. A day of inflows would be the first sign buyers are stepping back in.
  • Whether $72,000 holds. Bitcoin is testing levels it hasn't seen since August.

At the time of writing (about 12:00 PM ET on Nov 10, 2026), bitcoin traded near $72,900 USD and ether near $2,020 USD, per Coinbase. This article is for informational purposes only and is not financial advice.

Sources:

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This article may be AI-assisted and is subject to errors and omissions.

Methodical Millions https://methodicalmillions.com
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