Why is the cryptocurrency market crashing today? Higher-than-expected U.S. inflation has strengthened expectations of a Federal Reserve rate hike, pushing Bitcoin below $73,000 and sending Zcash (ZEC) under the $1,000 mark. ZEC has emerged as the biggest loser among the 20 largest cryptocurrencies this week.
The crypto sell-off extended into Wednesday, November 11, as traders continued reacting to Tuesday’s hotter-than-forecast inflation report. Most major digital assets are trading lower, reflecting growing concerns about tighter monetary conditions.
Bitcoin (BTC) fell to $72,727 on Binance on Tuesday before rebounding to approximately $73,800. Ether (ETH) briefly declined to $2,006, while XRP and Solana (SOL) lost between 2% and 3% over the past 24 hours. Market sentiment also weakened, with the Crypto Fear & Greed Index falling to 29 on its 100-point scale.
The latest CPI figures have prompted traders to reconsider the Federal Reserve’s December policy outlook. Treasury yields moved higher, while the probability of a larger rate increase nearly tripled within two hours of the inflation announcement.
Zcash has been hit particularly hard. Launched in 2016, ZEC is a privacy-focused cryptocurrency that allows transactions to conceal the sender, recipient and transferred amount. The token dropped below $1,000 on Wednesday for the first time since September 5. At approximately $966, ZEC has declined 15.4% in 24 hours and 24.8% over the past week.
The recent correction comes after a strong performance throughout 2026. Zcash climbed from around $526 at the beginning of the year to a closing peak of $1,653 on September 26. Data covering the 20 largest Binance-listed cryptocurrencies indicates that ZEC has suffered the most significant daily and weekly losses, although it remains up 89% year-to-date.
Why Is Crypto Crashing? Hot CPI Data Raises December Fed Hike Expectations
The latest inflation figures exceeded economists’ estimates. The Consumer Price Index (CPI) increased by 0.4% in October, compared with the expected 0.3% rise. Core CPI, which excludes food and energy, advanced 0.3%, above the forecast of 0.2%.
The reading aligned with a warning previously issued by Federal Reserve Governor Christopher Waller. In a speech delivered hours before the CPI announcement, Waller suggested that core inflation around 0.3% could make a 50-basis-point rate hike in December worth considering.
Traders responded by adjusting their rate expectations. According to Polymarket, the odds of a December increase of at least 50 basis points rose from 4.4% before the report to 12.8% within two hours. Those probabilities have since declined to 9.4%, while the likelihood of a standard 25-basis-point increase stands at 85.5%.
Rising interest rates generally create unfavorable conditions for cryptocurrencies. Higher yields on cash and bonds can attract capital away from riskier assets, including digital currencies. The 10-year U.S. Treasury yield climbed from 4.86% to 4.98% on Tuesday.
Other developments also contributed to the market decline:
Nvidia stock weakness: Nvidia shares dropped 5.5% to $168.89 on Tuesday, recording their lowest close since March 30. A Republican senator also urged CEO Jensen Huang to step down over his affair. Weakness in major AI-related stocks can spill over into cryptocurrency markets as investors reduce risk exposure.
Bitcoin ETF outflows: U.S. spot Bitcoin ETFs experienced net withdrawals of $969 million across the previous five trading sessions. CryptoQuant contributor Axel Adler Jr. tracked the outflows in a report cited by Lookonchain.
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Zcash Leads Crypto Losses as Traders Take Profits After a Major Rally
ZEC’s decline has been more severe than that of other cryptocurrencies, largely because of its impressive rally earlier in the year. A comparison of the 20 largest Binance-listed coins shows that Zcash recorded the steepest decline over the past seven days.
- ZEC: Down 24.8% over the past week, making it the weakest performer among the 20 coins. Despite the correction, the asset remains 89% higher in 2026.
- Other cryptocurrencies: NEAR and Tron (TRX) are the only other coins in the group that remain in positive territory year-to-date. Bitcoin has declined 6.1% over seven days and 15.9% since January 1.
Investors frequently liquidate profitable positions during periods of market uncertainty. Zcash has lost 41% of its value since reaching its September 26 closing high of $1,653.
The use of leverage has intensified the downward move. ZEC plunged from $1,199.20 to $965.79 on Hyperliquid in less than 24 hours. Lookonchain reported that 32 traders held leveraged bullish positions worth more than $1 million each. Of those positions, 27 are currently unprofitable, resulting in approximately $23.7 million in combined unrealized losses.
Historical performance, however, suggests that ZEC’s sharp declines can sometimes be followed by recoveries. Since January 2025, the token has recorded 14 daily drops of at least 12% on Binance. In eight cases, ZEC traded higher seven days later, posting a median gain of 6.5%.
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ZEC Price Analysis: $933 Support Becomes a Key Level
Zcash is trading near $966 after reaching $961.07 on Wednesday, marking its lowest price since September 4.
The daily chart shows that ZEC has broken below its 50-day exponential moving average (EMA), which currently stands at $1,200.68. The cryptocurrency remains above its 200-day EMA, positioned at $872.23.
Resistance levels to watch:
- $1,050, representing Wednesday’s intraday high.
- $1,191.76, a recent swing high near the 50-day EMA.
Support levels to monitor:
- $933.12, the September 4 low.
- Approximately $895, where two large bullish ZEC positions tracked by Lookonchain on Hyperliquid face liquidation near $894 and $895.
- $872.23, the 200-day EMA, which could provide additional support if selling continues.
Bitcoin’s immediate support is Tuesday’s low of $72,727. If BTC breaks below this level, traders may focus on $68,902, the August 20 low, as the next downside target.
Overall, the cryptocurrency market is under pressure as inflation concerns boost expectations for a more aggressive Federal Reserve rate hike. Zcash is experiencing the sharpest decline because of its earlier rally and the growing stress on leveraged bullish positions. A daily close above $1,050 could signal the first signs of stabilization in the token’s price.
