Bitcoin slips below $74,000 after hotter US inflation report

The US Consumer Price Index rose 0.4% in October, above economists’ 0.3% forecast, the Bureau of Labor Statistics reported. Core CPI, which excludes food and energy, increased 0.3% for the third consecutive month, against expectations for a 0.2% rise. Headline inflation had risen 0.6% in September.

Shelter costs rose 0.3% and accounted for more than 30% of the monthly increase in consumer prices. Food prices climbed 0.5%, while energy costs rose 0.7%, far below September’s 5.2% increase. The Labor Department did not release annual inflation figures for October because last year’s government shutdown disrupted data collection.

Bitcoin briefly approached $73,500 after the report. About $200 million in leveraged cryptocurrency positions were reportedly liquidated within five minutes. The coin was down about 1% over 24 hours, 4.5% for the week and more than 11% over 30 days, according to crypto.news data.

Reuters reported that markets had fully priced in a 25-basis-point increase at the Fed’s December 9 meeting, which would lift the federal funds target range from 3.75%-4.00% to 4.00%-4.25%. Governor Christopher Waller said earlier Tuesday that policymakers should consider a larger, 50-basis-point increase if inflation remained stubbornly high. October employment data, showing 165,000 jobs added, also gave policymakers reason to maintain a restrictive stance. The October Producer Price Index is due November 13, followed by minutes from the Fed’s October meeting on November 18.

Selling by US spot Bitcoin exchange-traded funds has added pressure. The funds recorded about $1.28 billion in net withdrawals from November 2 to November 6; BlackRock’s iShares Bitcoin Trust accounted for roughly $1.21 billion, while Fidelity’s FBTC drew $93.1 million. A further $201 million left the funds on November 9, including $213.2 million from BlackRock’s IBIT.

BRN analysts identified $73,000 as a key support level, saying a daily close below it could bring $70,000 into view. Bitget Wallet analysts put immediate support at $73,000-$74,000 and said a decisive break could expose Bitcoin to $68,000. Russell Thompson, chief investment officer of Hilbert Group, warned on November 9 that a drop below $71,900 could eventually put $65,000 in sight, particularly if weakness in technology stocks prompted leveraged investors to cut positions. Analysts said a sustained recovery would require Bitcoin to reclaim $80,000 alongside stronger spot demand.