Why is the crypto market falling today? Bitcoin has dropped below $73,000 as hotter-than-expected U.S. inflation data fuels expectations of a Federal Reserve rate hike. Zcash (ZEC) has suffered the steepest decline among the 20 largest cryptocurrencies, falling beneath $1,000.

The market-wide downturn continued on Wednesday, November 11, as investors reacted to Tuesday’s stronger inflation reading. Nearly all major cryptocurrencies are trading in the red, reflecting rising uncertainty over the Fed’s monetary policy.

Bitcoin (BTC) briefly dropped to $72,727 on Binance on Tuesday before recovering to around $73,800. Ether (ETH) touched $2,006, while XRP and Solana (SOL) recorded losses of 2% to 3% over the past 24 hours. The Crypto Fear & Greed Index also declined to 29, indicating growing bearish sentiment among market participants.

The latest inflation report has shifted expectations for the Federal Reserve’s upcoming decision. U.S. Treasury yields climbed, while the probability of a larger December rate hike nearly tripled within two hours of the CPI release.

Zcash has recorded the most significant losses during the downturn. The cryptocurrency, launched in 2016, offers privacy features that allow users to conceal transaction senders, recipients and payment amounts. ZEC fell below $1,000 on Wednesday for the first time since September 5. The token is trading near $966, down 15.4% over the past 24 hours and 24.8% over the past week.

Despite the recent sell-off, Zcash remains one of the strongest-performing cryptocurrencies this year. Its price rose from approximately $526 on January 1 to a closing peak of $1,653 on September 26. A comparison of the 20 largest Binance-listed coins shows ZEC has recorded the biggest daily and weekly declines, although it still maintains an 89% gain in 2026.

Why Is Crypto Crashing? Hot Inflation Strengthens Fed Rate Hike Bets

October inflation came in above expectations. The Consumer Price Index (CPI) increased by 0.4%, exceeding the 0.3% estimate. Core CPI, which excludes food and energy, also rose 0.3%, compared with the expected 0.2%.

The data reinforced concerns previously raised by Federal Reserve Governor Christopher Waller. In a speech delivered shortly before the CPI report, Waller suggested that core inflation near 0.3% could warrant consideration of a 50-basis-point rate hike in December.

Market expectations shifted rapidly following the announcement. Polymarket data showed the odds of a December rate increase of at least 50 basis points rising from 4.4% to 12.8% within two hours. The probability has since eased to 9.4%, while the likelihood of a conventional 25-basis-point hike stands at 85.5%.

Higher interest rates can weigh on cryptocurrency prices by making traditional investments, such as cash and government bonds, more attractive. This often encourages investors to move funds away from riskier assets. On Tuesday, the 10-year U.S. Treasury yield rose from 4.86% to 4.98%.

Two other developments added to the selling pressure:

Nvidia shares decline: Nvidia stock dropped 5.5% to $168.89 on Tuesday, marking its lowest closing price since March 30. A Republican senator also called for CEO Jensen Huang to resign over his affair. Weakness in major AI-related stocks can influence crypto markets as investors reduce their exposure to risk.

Bitcoin ETF outflows: U.S. spot Bitcoin ETFs recorded net outflows of $969 million over the previous five trading sessions. CryptoQuant contributor Axel Adler Jr. tracked the withdrawals in a report referenced by Lookonchain.

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Zcash Faces the Biggest Crypto Losses After Its Strong 2026 Rally

ZEC’s steep correction follows its substantial gains earlier this year. A review of price performance across 20 major Binance-listed cryptocurrencies over the past week and since January 1 shows Zcash has experienced the most significant decline.

• Zcash (ZEC): The token has fallen 24.8% in seven days, making it the worst-performing asset in the group. However, it remains up 89% year-to-date.
• Other cryptocurrencies: NEAR and Tron (TRX) are the only other coins in the group with positive year-to-date returns. Bitcoin has declined 6.1% over the past week and 15.9% since the beginning of 2026.

During periods of heightened market uncertainty, traders often take profits from assets that have delivered substantial returns. ZEC has now lost 41% from its September 26 closing high of $1,653.

Leveraged positions have also accelerated the decline. On Hyperliquid, ZEC dropped from $1,199.20 to $965.79 in less than 24 hours. Lookonchain identified 32 traders holding leveraged bullish positions worth more than $1 million each. Of these, 27 are currently facing unrealized losses, with their combined losses estimated at $23.7 million.

Historical data suggests that sharp ZEC declines can sometimes lead to short-term recoveries. Since January 2025, the token has recorded 14 daily losses of at least 12% on Binance. In eight of those instances, ZEC traded higher seven days later, with a median gain of 6.5%.

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ZEC Price Analysis: Will $933 Provide Support as Liquidation Risks Increase?

Zcash is trading around $966 after reaching a Wednesday low of $961.07, its weakest price since September 4.

On the daily chart, ZEC has broken below its 50-day exponential moving average (EMA), currently positioned at $1,200.68. However, the cryptocurrency remains above its 200-day EMA at $872.23.

Resistance levels:

• $1,050, corresponding to Wednesday’s intraday high.
• $1,191.76, a recent swing high located near the 50-day EMA.

Support levels:

• $933.12, the September 4 low.
• Around $895, where two major ZEC bullish positions tracked by Lookonchain on Hyperliquid face liquidation near $894 and $895.
• $872.23, the 200-day EMA, which could serve as a deeper support level.

Bitcoin is also approaching a critical technical threshold. Tuesday’s low of $72,727 represents immediate support. A break below that level could expose BTC to further losses toward $68,902, the August 20 low.

The crypto market’s current decline reflects a combination of stronger inflation, rising expectations of a Federal Reserve rate hike and mounting losses among leveraged traders. Zcash is facing the heaviest selling pressure after its significant rally earlier in the year. A daily close above $1,050 could provide an early indication that the bearish momentum is weakening.

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