Bitcoin and Crypto Market Slide Amid Inflation Worries and ETF Outflows

Bitcoin dropped to $73,344.71 on 12 November, marking a 0.4 percent decline over the previous 24 hours with a market capitalization of $1.47 trillion. This followed a low of $72,695 on 10 November, which was the lowest level in about three months. The total cryptocurrency market capitalization fell 0.78 percent to $2.43 trillion, while Ethereum fell 0.49 percent to $2,044.40. Bitcoin held a market dominance of 60.5 percent, and Ethereum held 10.2 percent.

Market Pressures

Analysts pointed to faster-than-estimated US inflation, a stronger US dollar, and signals that the US Federal Reserve might hike interest rates as main causes for the dip in risk assets. Alex Kuptsikevich from FxPro noted that interest in artificial intelligence following Anthropic's IPO is pulling risk capital away from crypto. Nischal Shetty from WazirX and the CoinSwitch Markets Desk highlighted that persistent inflation, ETF withdrawals, and strong US jobs figures also weighed on participation, while immediate support levels for Bitcoin sit between $73,100 and $73,300.

Context

Cryptocurrencies and other risk-on assets often face downward pressure when central banks signal higher interest rates or when inflation data runs higher than expected. Major market shifts like this are typically influenced by global macroeconomic trends, shifting investor interest toward traditional equities or emerging technology sectors, and institutional fund movements.