Bitcoin price fell near USD 73,000 during the latest market sell-off, extending a difficult week for the cryptocurrency. It later recovered to around USD 73,500 on November 12, while Ethereum traded below USD 2,100 and Solana struggled near USD 82.
CoinGlass figures showed more than USD 723 million in crypto liquidations over a 24-hour period on November 11. The losses came alongside fresh withdrawals from US spot Bitcoin exchange-traded funds and growing expectations that the Federal Reserve will raise interest rates in December.
October Inflation Adds to Bitcoin Price Pressure
US inflation rose faster than economists expected in October. The Bureau of Labor Statistics reported a 0.4% monthly increase in consumer prices on November 10, against forecasts of 0.3%. Core prices, which exclude food and energy, climbed 0.3%, while shelter costs increased 0.3% and food prices rose 0.5%.
Traders subsequently raised their bets on another Federal Reserve rate increase. CME FedWatch figures cited on November 11 put the chance of a 25-basis-point increase in December at about 86%, with the remaining probability pointing to a larger hike. The Fed’s target range currently stands at 3.75% to 4%.
Higher borrowing costs can make cash and bonds more attractive than riskier investments. Still, Bitcoin was already under pressure before the inflation report, as investors reduced exposure across the wider cryptocurrency market.
Bitcoin ETF Outflows Deepen Selling Pressure
Liquidations were concentrated among traders who had positioned for a recovery. Of the USD 723 million in forced closures recorded by CoinGlass, roughly USD 570 million involved long positions. Bitcoin accounted for about USD 203 million of the overall amount.
Fund flows offered little relief. Farside Investors reported USD 299.8 million in net outflows from US spot Bitcoin ETFs on November 11. BlackRock’s IBIT lost USD 269.7 million, and Grayscale’s GBTC recorded USD 39.1 million in withdrawals. Morgan Stanley’s MSBT attracted USD 9 million.
That followed net withdrawals of USD 201 million on November 9 and USD 95 million on November 10. Bitcoin also moved below its 50-week moving average near USD 76,100. Market data placed a recent low near USD 72,689, leaving traders watching that level after the break below USD 73,000.
Old Glory Bank Challenges Fed as Crypto Regulation Faces Scrutiny
Away from the price charts, Old Glory Bank CEO Mike Ring accused the Federal Reserve of holding back the lender’s crypto banking rollout. Ring said, “The Fed hates crypto,” and argued that the central bank did not want his institution to make transfers between bank accounts and blockchain networks easier.
The dispute follows a failed plan to combine Old Glory’s holding company with Digital Asset Acquisition Corp. An August 13 filing with the Securities and Exchange Commission shows that both parties agreed to terminate the transaction. Federal Reserve records separately list the related application as withdrawn on August 20.
Those filings confirm the deal ended but do not establish Ring’s claim about the Fed’s motives. Old Glory Bank says it is pursuing another funding arrangement and hopes to introduce its NextGen banking platform in the first quarter of 2027. The FDIC has since classified the lender as adequately capitalized, although restrictions remain.
Meanwhile, Democrats’ midterm victories mean they will control both chambers of Congress from January. Some crypto participants have raised the prospect of a return to a tougher regulatory approach, described as “Gensler 2.0.” No such regulatory change has taken effect as a result of the election.
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