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Ahmed Barakat
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Bitcoin is struggling to find its footing after another brutal sell-off pushed its price below $73,000. The decline wiped out hundreds of millions of dollars in leveraged positions, leaving us questioning if the market has entered a deeper correction phase.
Bitcoin is now trading around $73,600 after briefly losing the $73,000 level. Ethereum slipped below $2,100, while XRP approached $1.05 and Solana struggled to hold $82. More than $723 million in crypto positions were liquidated over 24 hours, with nearly 79% coming from long bets.
The timing is particularly uncomfortable for Bitcoin bulls. October’s hotter-than-expected US inflation report has revived concerns about interest rates, while recent US election results have introduced another layer of regulatory uncertainty. Now, a banking dispute involving the Federal Reserve is adding fuel to the fire.
Why Is Bitcoin Price Falling? Inflation? Liquidations?
The sell-off has several forces working against it. First, October’s US Consumer Price Index (CPI) increased 0.4% month over month, exceeding economists’ expectations of 0.3%. Core inflation also climbed 0.3%, above the 0.2% forecast.
The interest-rate outlook has become even more concerning. According to CME’s latest rate probability data, the chance of the Federal Reserve keeping its target rate unchanged at 3.75%–4% has fallen to zero. This represents a sharp reversal from just one day earlier, when the probability of unchanged rates stood at 16%. It was 17.3% a week ago and 15.9% one month earlier.
Markets now assign an 86.3% probability to a 25-basis-point rate increase, taking the target range to 4%–4.25%. Another 13.7% probability is assigned to a larger 50-basis-point increase.
The liquidation data paints an equally uncomfortable picture. CoinGlass recorded $732 million in forced closures across crypto markets over 24 hours on November 11. Long positions accounted for $578 million, meaning traders betting on higher prices absorbed most of the damage.
Bitcoin also lost its 50-week moving average near $76,100, ending a seven-week streak above the technical level. The breakdown followed a week of heavy institutional selling, with US spot Bitcoin ETFs recording approximately $1.28 billion in net outflows.
The combination of ETF withdrawals, leveraged liquidations and inflation uncertainty has created a difficult environment for buyers. Social chatter has pushed back against describing the move as a full-blown crash, pointing to comparisons with the Nasdaq’s monthly decline. Nevertheless, losing important technical levels has given bears another reason to test market confidence.
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Gensler 2.0 and Fed Faces Crypto Banking Accusations
Bitcoin price problems are unfolding alongside renewed political anxiety. Recent US midterm election results have strengthened Democratic influence in Congress, raising questions about the future direction of crypto regulation.
The crypto community is increasingly discussing the possibility of a Gensler 2.0 regulatory environment. The concern centers on whether a tougher approach could return for digital asset companies, particularly decentralized autonomous organizations (DAOs), digital asset treasuries (DATs), memecoins, and privacy-focused crypto.
The regulatory uncertainty could complicate efforts to establish clearer rules for the industry. While tokenization and stablecoin initiatives may continue under existing frameworks, Democratic oversight could slow new legislation and challenge the durability of regulatory guidance.
Meanwhile, Old Glory Bank CEO Mike Ring has accused the Federal Reserve of blocking his institution’s crypto-integrated banking launch at the last minute.
Ring’s complaint, summarized in his public comments, shows the central bank remains hostile toward crypto-friendly banking initiatives. He described the setback as evidence that the Fed hates crypto.
Old Glory Bank is reportedly pursuing an alternative launch strategy that avoids requiring the same Federal Reserve approval, potentially targeting the first quarter of 2027.
What do all these mean for crypto? The immediate challenge for Bitcoin price remains getting back above $75,000 and rebuilding confidence after the latest liquidation wave. A deeper decline would put additional pressure on already nervous traders.
Yet the longer-term Bitcoin thesis has not necessarily disappeared. Concerns about government spending, monetary debasement, and currency purchasing power continue to support the argument for holding scarce digital assets.
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