Cryptocurrency markets faced a downturn on Tuesday, November 10, as stronger-than-anticipated inflation data dampened investor sentiment and raised concerns about tighter monetary policy. Bitcoin (BTC) dropped 1.83% to $73,874.38, while Ethereum (ETH) fell 3.43% to $2,059.16, and Solana (SOL) declined 3.69% to $83.37. The sell-off mirrored broader risk aversion as investors reassessed the Federal Reserve's policy outlook.
The unexpected inflation figures triggered a sell-off in U.S. government bonds, pushing the 10-year Treasury yield above 5% and the two-year yield near 4.75%. Higher yields made fixed-income investments more appealing, adding pressure on speculative assets like cryptocurrencies. The U.S. dollar also strengthened, further tightening financial conditions for dollar-denominated assets such as Bitcoin.
Markets now anticipate a December interest rate hike by the Federal Reserve, with some traders considering a 50-basis-point increase. This tightening monetary policy backdrop, combined with rising bond yields and a stronger dollar, is creating significant challenges for digital assets. Spot Bitcoin ETFs, including iShares Bitcoin Trust ETF (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC), also traded lower.
Investors are closely monitoring Bitcoin's ability to reclaim the $75,000 level and whether institutional flows stabilize. Without renewed demand, any near-term recovery may struggle to sustain. Altcoins like Ethereum and Solana face additional selling pressure, particularly if Bitcoin continues to weaken.