Bitcoin price today: Why BTC USD fell near $73,000 after US CPI report and could it crash to $70,000 next?

Bitcoin price today after CPI report: Bitcoin fell to $73,000 level on Tuesday after a stronger-than-expected US inflation report raised concerns that the Federal Reserve could increase interest rates more sharply in December. The latest decline comes as investors continue to pull money out of Bitcoin funds, leaving the cryptocurrency with another challenge as it tries to recover from its recent losses.

Bitcoin price today after CPI inflation data

BTC USD was trading near $74,300 shortly before the October inflation figures were released. It then dropped to around $73,400 before recovering slightly into the upper-$73,000 range. The cryptocurrency is now down more than 11% over the past month.

CPI impact on crypto: Higher US inflation puts pressure on Bitcoin (BTC USD)

US consumer prices rose 0.4% in October exceeding economists' forecast of 0.3%. Core inflation, which excludes food and energy, increased 0.3%, compared with expectations of 0.2%. And food prices climbed 0.5%, while energy costs rose 0.7%.


The figures pushed US government bond yields higher and raised questions about what the Federal Reserve might do at its December meeting.

Bitcoin Magazine reported that traders increased their bets on a possible 0.5-percentage-point rate increase. Federal Reserve Governor Christopher Waller had already indicated that he was leaning towards a rate hike in December. He also said a larger increase should be considered if inflation remained higher than expected.

Before the inflation report, markets had largely expected a smaller, 0.25-percentage-point increase, according to CNBC. Higher interest rates can make investments that pay interest more appealing than Bitcoin, which does not generate regular income.

Bitcoin funds record billions in withdrawals

Investors pulled $201 million from US spot Bitcoin exchange-traded funds on Monday as BlackRock's iShares Bitcoin Trust recorded $213.2 million in withdrawals, marking its seventh consecutive session of outflows.

The selling has been heavy over the past week. US spot Bitcoin funds recorded around $1.28 billion in net outflows between November 2 and November 6, as per Crypto.news.

Bitcoin has struggled to recover after trading above $87,000 in early October. The combination of investor withdrawals and uncertainty over interest rates has added to the pressure on its price.

BTC USD price prediction: Will Bitcoin fall towards $70,000

Traders are now watching the $73,000 level. A daily close below it could open the way for a decline towards $70,000. Bitget Wallet analysts have warned that a deeper fall could take Bitcoin towards $68,000.

While a recovery towards $80,000 would require stronger buying demand.

The next key dates for investors are November 13, when the October US Producer Price Index is due and November 18, when the Federal Reserve is scheduled to release minutes from its October meeting. Both could provide further clues about the direction of interest rates and the pressure facing Bitcoin.