Bitcoin Falls Below $73,000 After US Inflation Comes in Hotter Than Expected

Bitcoin dropped below $73,000 on Tuesday, November 10, its lowest price since August 21. The fall came right after new US data showed prices rising faster than expected in October.

What the inflation report showed

US consumer prices rose 0.4% in October from September. Forecasts expected 0.3%. Core inflation, which leaves out food and energy, rose 0.3% against an expected 0.2%.

Food prices went up 0.5% and energy 0.7%, with gasoline up 1%. Housing costs rose 0.3%.

The Bureau of Labor Statistics did not publish the usual year-over-year figure this time. It said it could not calculate it, because data for October 2025 is missing after last year's government funding pause.

Why it matters

Hotter inflation makes another interest rate hike by the Federal Reserve more likely. After the report, markets priced in a more than 98% chance of a 0.25-percentage-point hike at the Fed's December meeting.

Higher rates let safe assets such as government bonds pay more. That is usually seen as bad news for crypto and other risky assets, because some money moves to the safer option.

Fed Chair Waller has said he supports a December hike. He also said that if core inflation keeps rising by about 0.3% a month or more, the Fed should consider a bigger, 0.5-point move. October's core figure landed right at that level.

What changed since this morning

Earlier today we wrote that bitcoin was stuck near $75,000 and that the inflation report would be the next big test. The test went badly. Bitcoin first slipped below $74,000 after the data came out, then fell below $73,000 a couple of hours later.

What's next

The Fed makes its next rate decision at its December meeting.