Bitcoin is facing renewed selling pressure after a sharp market downturn dragged its price below $73,000. The latest decline triggered hundreds of millions of dollars in leveraged liquidations, raising concerns that the cryptocurrency could be entering a deeper correction.
BTC has recovered to approximately $73,600 after briefly breaking below $73,000. Meanwhile, Ethereum slipped under $2,100, XRP moved closer to $1.05, and Solana struggled to maintain support above $82. More than $723 million in cryptocurrency positions were liquidated over 24 hours, with nearly 79% of the losses coming from bullish long positions.
Several developments are weighing on investor confidence. October’s stronger-than-expected U.S. inflation data has increased concerns about further interest rate hikes, while the latest U.S. midterm election results have raised questions about the future of crypto regulation. Adding to the uncertainty, the Federal Reserve is facing accusations of obstructing a crypto-friendly bank’s planned operations.
Why Is Bitcoin Price Declining? Inflation and Leveraged Liquidations Add Pressure
Bitcoin’s latest correction reflects several overlapping market pressures. October’s U.S. Consumer Price Index (CPI) report was one of the main catalysts, showing a 0.4% monthly increase against economists’ expectations of 0.3%. Core CPI, which excludes food and energy prices, also advanced 0.3%, exceeding the projected 0.2%.
The inflation figures have strengthened expectations of additional monetary tightening by the Federal Reserve. CME rate probability data indicates that the likelihood of the central bank maintaining its benchmark interest rate at 3.75%–4% has fallen to zero. This marks a significant shift from the previous day, when the probability of an unchanged rate was 16%. The figure stood at 17.3% a week earlier and 15.9% one month ago.
Traders are now pricing in an 86.3% chance of a 25-basis-point increase, potentially lifting the federal funds target range to 4%–4.25%. Meanwhile, the probability of a larger 50-basis-point hike is estimated at 13.7%.
Leveraged trading activity has added another layer of pressure. CoinGlass reported approximately $732 million in cryptocurrency liquidations during the 24 hours ending November 11. Long positions represented $578 million of the total, showing that bullish traders absorbed most of the losses as prices moved lower.
Bitcoin has also slipped beneath its 50-week moving average near $76,100, ending a seven-week run above this important technical indicator. The decline coincided with significant institutional selling, as U.S. spot Bitcoin ETFs recorded roughly $1.28 billion in net outflows over the previous week.
The combination of institutional withdrawals, forced liquidations and uncertainty surrounding interest rates has weakened buying momentum. Although some traders argue that the current decline does not qualify as a full-scale market crash, Bitcoin’s breakdown below key technical levels has increased concerns about further downside.
Discover: The Crypto Presales This Q4 2026
Gensler 2.0 Regulatory Fears Grow as Federal Reserve Faces Crypto Banking Criticism
Beyond market conditions, Bitcoin is facing another potential challenge from the changing U.S. political landscape. Recent midterm election results have strengthened Democratic influence in Congress, creating uncertainty about the direction of future cryptocurrency legislation.
Crypto investors are increasingly concerned about the possibility of a regulatory environment resembling the tenure of former SEC Chair Gary Gensler. A potential return to stricter oversight could create difficulties for digital asset businesses, particularly decentralized autonomous organizations (DAOs), digital asset treasury companies (DATs), memecoins and privacy-oriented 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
These concerns could complicate the industry’s efforts to establish predictable regulatory standards. While stablecoin development and tokenization initiatives may continue under existing rules, stronger Democratic oversight could slow legislative progress and introduce uncertainty around the durability of current regulatory policies.
At the same time, Old Glory Bank CEO Mike Ring has accused the Federal Reserve of preventing his institution from launching its planned cryptocurrency-integrated banking services at the last moment.
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 comments suggest that the bank encountered resistance from the central bank while attempting to introduce crypto-related financial services. He portrayed the setback as evidence of the Federal Reserve’s opposition to cryptocurrency-friendly banking initiatives.
Old Glory Bank is reportedly considering an alternative operating strategy that would avoid the same Federal Reserve approval requirements. The institution could pursue this route with a potential launch targeted for the first quarter of 2027.
Bitcoin Price Outlook: Can BTC Recover Above $75,000?
Bitcoin’s immediate recovery prospects depend on whether buyers can overcome the combined pressure from inflation concerns, institutional selling, regulatory uncertainty and leveraged liquidations.
Reclaiming $75,000 would represent an important step toward restoring bullish confidence following the latest market downturn. However, continued selling pressure could expose BTC to additional losses if buyers fail to establish support above this level.
Despite the short-term weakness, Bitcoin’s broader investment narrative has not necessarily changed. Concerns about expanding government debt, monetary debasement and declining fiat currency purchasing power continue to support the argument for holding assets with limited supply.
For now, traders are watching whether Bitcoin can regain its lost technical levels while navigating uncertainty over Federal Reserve policy and the future of U.S. crypto regulation.
