Bitcoin continues to face significant downward pressure after its latest sell-off pushed the cryptocurrency below $73,000. The decline triggered a wave of leveraged liquidations worth hundreds of millions of dollars, intensifying concerns that BTC could be heading toward a more prolonged market correction.
Bitcoin has since recovered to approximately $73,600 after briefly losing the $73,000 support level. Ethereum also slipped below $2,100, while XRP approached $1.05 and Solana struggled to hold above $82. Across the broader crypto market, more than $723 million in leveraged positions were liquidated within 24 hours, with bullish long positions accounting for nearly 79% of the total.
The market weakness comes amid several developments that are undermining investor confidence. Stronger-than-expected October inflation data has increased expectations of further Federal Reserve rate hikes. Meanwhile, recent U.S. midterm election results have raised fresh questions about cryptocurrency regulation. A separate dispute involving the Federal Reserve and a crypto-friendly bank has added another source of uncertainty.
Why Is Bitcoin Falling? Inflation Data and Massive Liquidations Weigh on BTC
Bitcoin’s latest decline has been driven by a combination of macroeconomic uncertainty and excessive leverage in the cryptocurrency market.
October’s U.S. Consumer Price Index (CPI) increased 0.4% month over month, exceeding economists’ forecast of 0.3%. Core inflation, which excludes food and energy prices, also rose 0.3%, compared with the expected 0.2%.
The stronger inflation reading has significantly changed expectations surrounding the Federal Reserve’s next interest rate decision. According to CME rate probability data, the likelihood of the Fed maintaining its benchmark rate at 3.75%–4% has fallen to zero. This represents a notable shift from the previous day, when the probability of unchanged rates stood at 16%. The figure was 17.3% a week earlier and 15.9% one month ago.
Markets are now pricing in an 86.3% probability of a 25-basis-point increase, which would move the target range to 4%–4.25%. The possibility of a more aggressive 50-basis-point hike currently stands at 13.7%.
Meanwhile, forced liquidations have intensified the selling pressure. CoinGlass data recorded approximately $732 million in crypto liquidations during the 24 hours ending November 11. Long positions accounted for $578 million, indicating that traders betting on rising prices suffered the largest losses.
Bitcoin has also broken below its 50-week moving average near $76,100, ending a seven-week period above the technical indicator. The breakdown coincided with substantial institutional selling, as U.S. spot Bitcoin ETFs experienced approximately $1.28 billion in net outflows over the previous week.
These developments have created a challenging environment for Bitcoin investors. Persistent ETF withdrawals, leveraged position closures and uncertainty over interest rates are limiting buying momentum. Although some market participants argue that the decline does not yet represent a full-scale crash, the loss of important technical support levels has strengthened bearish expectations.
Discover: The Crypto Presales This Q4 2026
Gensler 2.0 Concerns Return as Fed Faces Accusations Over Crypto Banking
Bitcoin’s market weakness is unfolding alongside growing political and regulatory uncertainty in the United States. Recent midterm election results have strengthened Democratic influence in Congress, prompting concerns about the future direction of digital asset policies.
The possibility of a regulatory environment resembling former SEC Chair Gary Gensler’s tenure has become a growing topic of discussion across the crypto industry. Investors fear that tougher oversight could return, creating additional challenges for cryptocurrency businesses.
Potentially affected sectors include decentralized autonomous organizations (DAOs), digital asset treasury companies (DATs), memecoins and privacy-focused cryptocurrencies.
JUST IN: 🇺🇸 CFTC Chair says they will “future-proof” crypto regulations.
“We can’t allow Gary Gensler 2.0 to come in and tear it all up.” pic.twitter.com/ik6gt3Xtns
— Watcher.Guru (@WatcherGuru) February 17, 2026
Renewed regulatory uncertainty could also delay efforts to establish comprehensive rules for the cryptocurrency industry. Although stablecoin projects and tokenization initiatives may continue operating under existing frameworks, stronger Democratic oversight could slow new legislation and raise questions about the long-term stability of current regulatory guidance.
Adding to these concerns, Old Glory Bank CEO Mike Ring has accused the Federal Reserve of blocking his institution’s planned launch of cryptocurrency-integrated banking services shortly before its introduction.
DeFi. The next level of financial freedom. Fly above the Fed! The blockchain is the runway.
Hear CEO Mike Ring explain why. pic.twitter.com/AGlN7sU0Ou
— Old Glory Bank (@OldGloryBank) November 6, 2026
Ring’s public statements indicate that the bank encountered resistance from the Federal Reserve while attempting to introduce crypto-related banking services. He described the situation as another example of the central bank’s opposition to cryptocurrency-friendly financial institutions.
Old Glory Bank is reportedly evaluating an alternative launch strategy that would bypass the same Federal Reserve approval process. The bank could pursue this approach ahead of a potential launch in the first quarter of 2027.
Bitcoin Price Outlook: Will BTC Reclaim the $75,000 Level?
Bitcoin’s next major move will likely depend on whether buyers can overcome the combined pressure from inflation concerns, institutional ETF withdrawals, leveraged liquidations and regulatory uncertainty.
Reclaiming $75,000 could help restore confidence and provide an early indication that bullish momentum is returning. However, continued selling pressure and weakening market sentiment could expose Bitcoin to another downward move if it fails to establish support above this threshold.
Despite the short-term uncertainty, Bitcoin’s longer-term investment narrative remains relevant. Concerns over rising government debt, monetary expansion and declining purchasing power of traditional currencies continue to strengthen the case for scarce digital assets.
For now, investors are closely monitoring Bitcoin’s ability to recover key price levels while assessing the potential impact of Federal Reserve policy and changing U.S. cryptocurrency regulations.
