Bitcoin traded near $73,500 on Nov. 11, recovering from the week's reported low of $72,602, but the cryptocurrency remained below the $75,000 resistance area. A renewed decline beneath $72,600 could expose the psychological $70,000 level. Meanwhile, spot Bitcoin exchange-traded funds (ETFs) recorded approximately $1.48 billion in net withdrawals between Nov. 2 and Nov. 9, leaving the asset approaching technical support around $72,600.

The pullback has unfolded against a deteriorating macroeconomic backdrop: rising U.S. bond yields following a hotter-than-expected inflation report and a series of hawkish comments from Federal Reserve officials signaling support for further rate hikes.

Stickier Inflation Data Reshape the Fed Outlook

The Bureau of Labor Statistics reported that employers added 165,000 jobs in October, while the unemployment rate edged down to 4.1%, indicating continued labor-market resilience. The Nov. 6 employment report followed September's increase of 60,000 jobs; the two figures describe separate months and should not be confused with economists' forecasts.

Signs that inflation is stickier than expected have compounded the pressure. A report released on Tuesday showed that the headline Consumer Price Index (CPI) rose 0.4% in October. Core inflation, which excludes volatile food and energy prices, also rose at a faster pace than expected.

The data have reinforced expectations that the Federal Reserve will raise interest rates at its coming meeting. The CME Fed Futures tool indicates a 25-basis-point hike, taking rates to a range of 400 to 425 basis points. The Fed's December decision now stands as the key near-term catalyst for markets to watch: the outcome and the accompanying guidance will clarify how quickly officials intend to tighten, and this pullback has tracked those signals closely.

Federal Reserve Governor Christopher Waller supported a 25-basis-point rate increase in December and said policymakers should consider a 50-basis-point increase if October core inflation reached approximately 0.3% or higher. The subsequent CPI report met that condition, although the Federal Reserve had not made a decision.

Other Fed officials have also hinted at further hikes. Austan Goolsbee, a top Fed official, described the October CPI as "borderline disturbing." Similarly, Federal Reserve's Anna Paulson said she would support a gradual tightening of rates.

Rising Treasury Yields Weigh on Risk Assets

Rising U.S. Treasury yields added pressure to Bitcoin following the inflation report. According to the U.S. Treasury, the 10-year yield reached 4.98% on Nov. 10, while the 30-year and five-year yields climbed to 5.35% and 4.81%, respectively. Higher bond yields can weigh on Bitcoin as investors reassess risk exposure and demand higher returns from speculative assets. The mechanism is straightforward: Bitcoin produces no yield of its own, so when Treasuries pay more, the opportunity cost of holding crypto and other assets without cash flows rises — one reason traders watch bond markets alongside crypto prices.

Rising yields likely explain why the Crypto Fear and Greed Index has dropped into the extreme fear zone. The index distills crypto market sentiment into a single reading, and its extreme fear designation is generally read as a sign of heavily risk-off positioning among traders.

Spot Bitcoin ETF Outflows Accelerate

Spot Bitcoin ETF outflows have continued rising in recent days. The funds shed over $95 million on Tuesday after losing $201 million on Monday. In total, these funds have lost more than $1.5 billion this month, more than triple the $505 million they lost last month. Rising net outflows indicate weaker demand for the funds this month, although redemptions alone do not establish investors' reasons for selling. Because spot Bitcoin ETFs report flows daily, the figures give a near-real-time window into fund investor behavior, and the coming sessions will show whether redemptions stabilize or extend.

ETF outflows have risen following the U.S. midterm elections, in which Americans voted against Donald Trump and the Republican Party.

Technical Analysis

On the charts, Bitcoin has been in a strong sell-off in recent weeks, dropping from a September high of $87,365 to a low of $72,602. The price has slumped below the 38.2% Fibonacci retracement level at $76,078 — one of the ratio-based levels traders use to gauge how deeply a correction has pulled back — remained below the Supertrend indicator, and the MACD indicator has continued falling below the zero line, a condition commonly read as sustained downward momentum.

Based on this setup, the technical outlook points to a likely continuation lower, potentially toward the key support level of $70,000 — a view that would be confirmed by a drop below this week's low of $72,600. On the other hand, a move above the key resistance level of $75,000 would invalidate the bearish forecast.

This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets involve substantial risks. Readers should independently verify market data before making investment decisions.