The acceleration of consumer inflation in the U.S. and growing expectations of an interest rate hike by the Federal Reserve (Fed) were among the main factors behind the sell-off in the global cryptocurrency market in November 2026. Amid a strengthening U.S. dollar and waning investor interest in risky assets, Bitcoin fell below $70,000 on November 13, while Ethereum dropped to approximately $1,950.
According to data from the U.S. Department of Labor released on November 10, 2026, the Consumer Price Index (CPI) rose 0.4% in October compared to the previous month, following a 0.6% increase in September. Core inflation, which excludes the most volatile food and energy prices, stood at 0.3% on a monthly basis, remaining at the same level as the previous two months.
Meanwhile, food prices rose by 0.5% in October, energy prices by 0.7%, and housing prices by 0.3%. The latter category accounted for more than 30% of the total monthly increase in consumer prices.
Despite the slowdown in overall monthly price growth compared to September, inflation remains elevated, limiting the Fed’s ability to ease monetary policy.
At its October 28 meeting, the Federal Open Market Committee (FOMC) kept the target range for the federal funds rate at 3.75–4%. The decision was made by a vote of ten to two. Two committee members voted to raise the rate by 0.25 percentage points.
In its official statement, the Fed noted the steady growth of the U.S. economy, the stability of the labor market, and persistent inflationary pressures. The central bank reaffirmed its intention to bring inflation back to its 2% target.
Following the release of inflation data, investors began to more actively factor in the possibility of a rate hike at the next Fed meeting, scheduled for December 9. According to CoinDesk data from November 10, futures market participants were pricing in a 0.25 percentage point rate hike, bringing the range to 4–4.25%. At the same time, some Fed officials acknowledged the need for more substantial policy tightening if inflationary pressures remain high.
Interest rate hikes typically increase the attractiveness of dollar-denominated deposits and debt instruments, while simultaneously raising the cost of borrowed capital. For the cryptocurrency market, this could mean reduced liquidity and a decline in investors’ willingness to open positions in high-risk assets. The deteriorating situation in the technology sector of the U.S. stock market exerted additional pressure on digital assets. Investors were reassessing the valuations of major artificial intelligence companies amid concerns about massive capital expenditures and the prospects for a return on investment.
The decline in tech stocks was accompanied by a strengthening of the U.S. dollar and a reduction in cryptocurrency positions. According to data from The Block on November 13, Bitcoin fell to approximately $68,400 during trading, losing about 7% over the course of the day. Ethereum dropped 6% to $1,920, while BNB fell 6.3%. The price of XRP declined by approximately 3.5%.
The massive sell-off triggered a wave of forced liquidations in the cryptocurrency market. According to CoinGlass data cited by The Block, the volume of liquidations reached $1.47 billion over a 24-hour period, of which $1.31 billion came from long positions opened in anticipation of rising prices.
In total, the liquidations affected more than 175,000 traders. During a single four-hour period, the volume of forced liquidations reached $798 million.
Analysts attribute the acceleration of the decline to Bitcoin breaking through several key price levels. After falling below $72,000, the market faced increased selling pressure, and breaking through the $70,000 mark led to additional liquidations of leveraged positions.
According to a November 13 report by The Wall Street Journal, Bitcoin was heading toward its sixth consecutive week of decline, having lost more than 21% of its value relative to its late-September highs. Ethereum fell to its lowest levels in about three months.
The outlook for the Federal Reserve’s December decision will be a key factor in the future performance of cryptocurrencies. If inflation continues to exceed expectations, the U.S. regulator may have additional grounds to raise interest rates. In that case, pressure on Bitcoin, Ethereum, and other digital assets is likely to persist, especially if capital continues to flow out of U.S. spot cryptocurrency ETFs.
An alternative scenario involves market stabilization should inflation slow and expectations of further monetary tightening ease. This could support demand for risky financial instruments and contribute to a recovery in cryptocurrency prices.
The next meeting of the Federal Open Market Committee will take place on December 8–9, 2026. Until then, investors will be closely monitoring new data on the state of the U.S. economy, inflation, and employment.
The U.S. Federal Reserve System serves as the country’s central bank and sets the key parameters of monetary policy. Its decisions on interest rates influence global financial markets, the cost of borrowing, the dollar exchange rate, and the investment appeal of various asset classes, including cryptocurrencies.
Sources: U.S. Department of Labor, inflation report dated November 10, 2026, U.S. Federal Reserve, decision dated October 28, 2026, The Block, data on cryptocurrency sell-offs dated November 13, 2026.
