Bitcoin remains under pressure following another major sell-off that briefly pushed its price below $73,000. The downturn triggered widespread leveraged liquidations worth hundreds of millions of dollars, raising concerns that the market could be moving into a deeper correction.

BTC has recovered to around $73,600 after briefly losing the $73,000 mark. Ethereum fell below $2,100, XRP approached $1.05, and Solana struggled to maintain its position above $82. Meanwhile, total cryptocurrency liquidations exceeded $723 million over 24 hours, with nearly 79% involving traders holding bullish long positions.

The latest weakness comes as several developments converge against the crypto market. Stronger-than-expected U.S. inflation has raised the prospect of additional Federal Reserve rate increases, while the latest midterm election results have created uncertainty about future crypto regulations. Allegations that the Federal Reserve obstructed a crypto-friendly bank have added another complication.

Why Is Bitcoin Price Dropping? Inflation and Liquidation Pressure Intensify

Bitcoin’s recent decline reflects growing macroeconomic concerns combined with heavy selling across leveraged trading markets.

October’s U.S. Consumer Price Index (CPI) increased 0.4% from the previous month, exceeding the 0.3% expected by economists. Core CPI, which excludes food and energy, also advanced 0.3%, compared with the 0.2% market forecast.

The inflation surprise has dramatically shifted expectations for the Federal Reserve’s upcoming policy decision. CME rate probability data shows that the likelihood of the central bank keeping interest rates unchanged within the 3.75%–4% range has fallen to zero. This compares with a 16% probability just one day earlier, 17.3% a week ago and 15.9% a month ago.

Traders are now assigning an 86.3% probability to a 25-basis-point rate increase, which would raise the target range to 4%–4.25%. The remaining 13.7% probability reflects expectations of a larger 50-basis-point increase.

The liquidation figures reveal how aggressively the market has been affected. CoinGlass recorded approximately $732 million in forced cryptocurrency position closures during the 24 hours ending November 11. Long traders accounted for $578 million, meaning investors betting on higher prices absorbed most of the losses.

Bitcoin has also fallen below its 50-week moving average near $76,100, breaking a seven-week streak above this technical benchmark. The move coincided with substantial institutional selling, as U.S. spot Bitcoin ETFs registered approximately $1.28 billion in net withdrawals over the previous week.

The combination of weakening institutional demand, leveraged liquidations and persistent inflation uncertainty has made it increasingly difficult for buyers to regain control. While some traders believe the downturn does not yet qualify as a full-scale crypto crash, Bitcoin’s loss of major technical levels has strengthened concerns about further declines.

Discover: The Crypto Presales This Q4 2026

Gensler 2.0 Fears Resurface as Federal Reserve Faces Crypto Banking Controversy

Beyond economic pressures, Bitcoin is also facing renewed uncertainty surrounding U.S. cryptocurrency regulation. Recent midterm election results have strengthened Democratic influence in Congress, prompting questions about how lawmakers may approach digital asset oversight.

The possibility of a regulatory environment similar to former SEC Chair Gary Gensler’s tenure is becoming a growing concern within the cryptocurrency community. Investors fear that a more aggressive enforcement approach could return, particularly for 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

Such uncertainty could slow the industry’s progress toward establishing clearer regulatory standards. Although stablecoin adoption and tokenization initiatives may continue under existing rules, stronger Democratic oversight could complicate new legislation and create uncertainty about the future of current regulatory guidance.

Meanwhile, Old Glory Bank CEO Mike Ring has accused the Federal Reserve of blocking his institution’s planned introduction of crypto-integrated banking services shortly before launch.

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

According to Ring’s public remarks, the bank faced resistance from the central bank while preparing to introduce cryptocurrency-related financial services. He portrayed the setback as evidence of the Federal Reserve’s hostility toward crypto-friendly banking initiatives.

Old Glory Bank is reportedly considering an alternative route that would allow it to proceed without depending on the same Federal Reserve approval process. The bank is potentially targeting the first quarter of 2027 for its launch under this approach.

Bitcoin Price Prediction: Can BTC Recover Above $75,000?

Bitcoin’s short-term outlook remains uncertain as traders assess the combined impact of inflation, institutional withdrawals, leveraged liquidations and regulatory developments.

The $75,000 level has become an important threshold for the next recovery attempt. A sustained move above it could help restore investor confidence and suggest that buyers are returning. Conversely, continued weakness below this level could expose BTC to additional selling pressure.

Nevertheless, the broader investment argument for Bitcoin has not disappeared. Concerns about increasing government debt, monetary expansion and the erosion of traditional currency purchasing power continue to support demand for assets with a fixed supply.

For now, Bitcoin’s ability to reclaim important technical levels will be crucial in determining whether the latest downturn develops into a deeper correction or gives way to a broader market recovery.