Bitcoin Price Under Pressure as Gensler 2.0 Fears Grow After Fed Blocks Crypto Bank

Bitcoin is struggling to regain momentum after another sharp sell-off pushed its price below $73,000. The latest decline triggered hundreds of millions of dollars in leveraged liquidations, raising concerns about whether the market is entering a more prolonged correction.

BTC is currently trading near $73,600 after briefly falling below the $73,000 threshold. Ethereum dropped under $2,100, XRP moved closer to $1.05, and Solana struggled to remain above $82. Across the cryptocurrency market, more than $723 million worth of positions were liquidated within 24 hours, with long positions accounting for nearly 79% of the total.

The downturn comes at an unfavorable time for Bitcoin investors. Stronger-than-expected U.S. inflation data for October has renewed concerns about interest rates, while recent U.S. midterm election results have introduced fresh uncertainty surrounding cryptocurrency regulation. Adding to these concerns, a dispute involving the Federal Reserve and a crypto-friendly bank is creating further pressure on market sentiment.

Why Is Bitcoin Falling? Inflation Concerns and Massive Liquidations

Several factors are contributing to Bitcoin’s latest decline. One of the biggest triggers is October’s U.S. Consumer Price Index (CPI) report, which showed monthly inflation rising 0.4%, above economists’ expectations of 0.3%. Core inflation also increased by 0.3%, exceeding the forecast of 0.2%.

The latest figures have significantly changed expectations for the Federal Reserve’s next interest rate decision. According to CME’s latest rate probability data, the likelihood of the central bank maintaining its benchmark interest rate within the 3.75%–4% range has dropped to zero. Just one day earlier, the probability of rates remaining unchanged was 16%. It stood at 17.3% a week earlier and 15.9% one month ago.

Market participants are now assigning an 86.3% probability to a 25-basis-point increase, which would lift the target range to 4%–4.25%. Meanwhile, the possibility of a more aggressive 50-basis-point increase stands at 13.7%.

The liquidation figures further highlight the pressure facing cryptocurrency traders. CoinGlass data showed approximately $732 million in leveraged positions being forcibly closed across the crypto market during the 24 hours ending November 11. Long positions accounted for $578 million of those liquidations, indicating that traders anticipating higher prices suffered most of the losses.

Bitcoin has also fallen below its 50-week moving average near $76,100, ending a seven-week period during which the cryptocurrency remained above this technical indicator. The breakdown followed substantial institutional selling, with U.S. spot Bitcoin ETFs recording approximately $1.28 billion in net outflows over the past week.

ETF withdrawals, leveraged liquidations and persistent inflation concerns have combined to create a challenging environment for Bitcoin buyers. Although some market participants argue that the current decline should not be classified as a full-scale crash, citing comparisons with the Nasdaq’s monthly performance, Bitcoin’s loss of important technical support has strengthened bearish sentiment.

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Gensler 2.0 Fears Return as Fed Faces Crypto Banking Accusations

Bitcoin’s price weakness is unfolding alongside renewed concerns about the future of U.S. cryptocurrency regulation. Recent midterm election results have increased Democratic influence in Congress, prompting investors to question whether the regulatory environment for digital assets could become more restrictive.

Within the crypto community, discussions about a potential return to a Gary Gensler-style regulatory approach are gaining attention. Investors are concerned that stricter oversight could once again target digital asset businesses, particularly decentralized autonomous organizations (DAOs), digital asset treasury companies (DATs), memecoins and privacy-focused cryptocurrencies.

JUST IN: 🇺🇸 CFTC Chair says they will “future-proof” crypto regulations.

“We can’t allow Gary Gensler 2.0 to come in and tear it all up.” pic.twitter.com/ik6gt3Xtns

— Watcher.Guru (@WatcherGuru) February 17, 2026

The possibility of a more aggressive regulatory approach could complicate the industry’s efforts to secure clearer legal guidelines. Although tokenization projects and stablecoin initiatives may continue operating under existing regulatory frameworks, increased Democratic oversight could delay new legislation and create uncertainty around previously established regulatory guidance.

At the same time, Old Glory Bank CEO Mike Ring has accused the Federal Reserve of obstructing his institution’s planned launch of crypto-integrated banking services at the last minute.

DeFi. The next level of financial freedom. Fly above the Fed! The blockchain is the runway.

Hear CEO Mike Ring explain why. pic.twitter.com/AGlN7sU0Ou

— Old Glory Bank (@OldGloryBank) November 6, 2026

According to Ring’s public statements, the central bank’s decision represents another setback for financial institutions seeking to integrate cryptocurrency services into traditional banking operations. He characterized the situation as evidence of the Federal Reserve’s opposition to crypto-friendly banking initiatives.

Old Glory Bank is reportedly exploring another route to introduce its services without relying on the same Federal Reserve approval process. The alternative approach could allow the institution to pursue a launch during the first quarter of 2027.

What Comes Next for Bitcoin Price?

The combination of inflation uncertainty, ETF outflows, regulatory concerns and leveraged liquidations has created additional obstacles for Bitcoin’s recovery.

In the near term, BTC needs to reclaim the $75,000 level to restore some market confidence and signal that buyers are returning following the latest wave of liquidations. Failure to recover this threshold could leave the cryptocurrency vulnerable to another decline as traders reassess their positions.

However, the longer-term investment case for Bitcoin remains intact for some market participants. Concerns surrounding rising government spending, monetary debasement and the declining purchasing power of traditional currencies continue to strengthen the argument for Bitcoin as a scarce digital asset.

Whether these broader economic concerns can offset the immediate pressure from tighter monetary policy and regulatory uncertainty remains a key question for the cryptocurrency market.

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