Bitcoin fell below $73,500, reaching its lowest level since mid-August, as hotter-than-expected US inflation strengthened expectations of further interest rate hikes and weighed on demand for riskier assets. The decline brings its losses for the year to around 16%. US core consumer prices rose 0.3% month-on-month in October, exceeding market expectations, while headline inflation accelerated to 0.4%. Ahead of the inflation release, Fed Governor Christopher Waller had signaled that a 50 basis point rate increase in December should be considered if core inflation came in at 0.3% or higher. Meanwhile, Dallas Fed President Lorie Logan indicated after the release that a faster pace of rate hikes may be possible. Markets subsequently increased bets on further rate hikes through mid-2027. This drove Treasury yields and the US dollar higher, adding to pressure on cryptocurrencies.