Bitcoin hovered close to $73,000 on November 10, as rising U.S. inflation figures put additional pressure on risk assets. Data from CoinGecko placed Bitcoin at $73,912 during the session, after touching a 24-hour low of $73,587. The latest pullback coincided with continued outflows from U.S.-listed spot Bitcoin exchange-traded funds (ETFs), even as exchange deposits showed signs of divergence among investors.

U.S. Inflation Shocks Markets

The U.S. Bureau of Labor Statistics announced that the Consumer Price Index rose 0.4% in October, surpassing economists’ expectations of a 0.3% increase. In comparison, September’s monthly rate stood at 0.6%.

Core consumer prices, which exclude volatile food and energy components, climbed 0.3%. This reading also exceeded the market consensus of 0.2%, reinforcing speculation over a potential Federal Reserve rate hike in December.

Following the inflation data, U.S. equity markets declined and Treasury yields climbed, according to Reuters. Bitcoin lost ground alongside other assets considered sensitive to fluctuating risk sentiment. Due to a federal funding lapse, no annual inflation rate for October has been published as comparable data for the previous year is unavailable.

ETF Outflows Accelerate

U.S.-listed spot Bitcoin ETFs saw $201 million in net withdrawals on November 9, according to tracking from Farside Investors. Over a six-session period beginning November 2, collective fund outflows reached approximately $1.48 billion.

BlackRock’s iShares Bitcoin Trust (IBIT), managed by the world’s largest asset management company, accounted for roughly $1.42 billion of the net outflows during this period. However, on November 4, broad ETF products drew $74.6 million in net inflows, showing fluctuating investor sentiment despite the prevailing trend.

The movement of funds within ETFs reflects changes in investment-product demand, and does not necessarily track every underlying Bitcoin transaction.

Mini dictionary: BlackRock is a global investment management corporation headquartered in New York, widely recognized as the largest asset manager worldwide. The iShares Bitcoin Trust (IBIT) is BlackRock’s spot Bitcoin ETF offering exposure to Bitcoin price performance, primarily aimed at institutional and retail investors seeking regulated access to the cryptocurrency market.

While BlackRock’s IBIT represented the majority of outflows, not all Bitcoin ETF products experienced withdrawals, and positive flows were registered on November 4 despite overall negative sentiment.

Short-Term Holder Pressures and Loss-Making Flows

On-chain analytics firm CryptoQuant estimated the average cost basis for short-term Bitcoin holders at $75,700 as of November 10. As Bitcoin traded below that level, these investors faced unrealized losses on average.

CryptoQuant also recorded declining exchange deposits from loss-making short-term Bitcoin holders. On November 6, this group transferred about 32,695 BTC—nearly 89% of all short-term holder exchange inflows at the time. By November 9, those inflows had fallen to approximately 9,900 BTC, indicating a sharp reduction even as prices remained under pressure.

This represents a roughly 70% decrease in loss-driven deposits from that cohort, though it does not capture total exchange flows or guarantee an overall reduction in selling activity.

Exchange deposit trends among loss-making short-term holders suggest that selling pressure from this group has recently eased, despite ongoing Bitcoin price weakness.

Decrease in Bitcoin Wallet Activity

Separate data from analytics platform Santiment, cited by Blockonomi, indicated a decline of approximately 108,700 nonempty Bitcoin wallets since October 16. While such figures reflect on-chain activity, wallet totals do not necessarily correspond to unique investor counts.

ETF outflows, exchange deposits, and wallet tallies each represent distinct dimensions of activity in the Bitcoin ecosystem, offering a multifaceted view of shifting sentiment during periods of heightened volatility.

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