Bitcoin Price Today Falls Below $74,000 as Hot CPI and Fed Rate Fears Hit Crypto

Key Takeaways

• Bitcoin fell below $74,000 after US headline and core inflation both exceeded market expectations.
• October CPI rose 0.4% month over month, while core CPI increased 0.3%, strengthening expectations of another Federal Reserve rate hike.
• US spot Bitcoin ETFs have recorded approximately $1.48 billion of net outflows in November through November 9.
• Bitcoin’s 200-day moving average near $73,200 is emerging as critical support, with a deeper decline toward $69,000 possible if it fails.

The Bitcoin price today fell below $74,000 after hotter-than-expected US inflation revived fears that the Federal Reserve could accelerate its rate-hiking campaign in December.

Bitcoin traded around $73,400 during Tuesday’s US session, down approximately 1.6%, after briefly falling below $73,000. The cryptocurrency had traded close to $74,900 before the inflation report, but selling intensified as Treasury yields and the US dollar moved higher.

The latest decline extends a difficult period for the crypto market, which is already dealing with persistent spot ETF outflows, weaker risk appetite and growing demand for downside protection in the options market.

Hot US CPI Strengthens Fed Rate-Hike Expectations

The October Consumer Price Index rose 0.4% month over month, exceeding the 0.3% consensus forecast. Core CPI, which excludes food and energy prices, increased 0.3%, above the expected 0.2%.

Although headline inflation slowed from September’s 0.6% increase, the third consecutive 0.3% core reading suggested that underlying price pressures remain persistent.

The figures strengthened expectations that the Federal Reserve will raise rates again at its December 8-9 meeting. A quarter-point increase is now widely expected, while the probability of a larger 50-basis-point move climbed toward 15% following the report.

Fed Governor Christopher Waller had said that a 0.3% core CPI reading would justify considering a half-point increase. With the inflation figure meeting that threshold, markets are now debating whether the Fed may need to tighten policy more aggressively.

The situation is particularly important because the next CPI report is scheduled for December 10, one day after the Fed announces its decision. Policymakers will therefore make their December decision without another monthly consumer inflation reading.

Why Higher Interest Rates Are Hurting Bitcoin

Bitcoin does not generate interest income, making it less attractive relative to government bonds when Treasury yields rise.

Hotter inflation pushed the two-year Treasury yield sharply higher and sent the 10-year yield toward the 5% threshold. The resulting increase in risk-free returns encouraged investors to reduce exposure to speculative assets, including cryptocurrencies and growth stocks.

A stronger dollar created another headwind. Because Bitcoin is predominantly priced in dollars, appreciation in the US currency can reduce purchasing power for international buyers and tighten global financial conditions.

Bitcoin has recently traded more like a high-beta technology asset than an inflation hedge. Its decline after the CPI report coincided with weakness in the Nasdaq, while traditional inflation-sensitive assets such as gold also fell.

Bitcoin ETF Outflows Add to Selling Pressure

Institutional demand through US spot Bitcoin ETFs has weakened considerably during November.

The funds recorded approximately $201 million of net outflows on November 9, marking a third consecutive session of withdrawals. BlackRock’s iShares Bitcoin Trust accounted for $213.2 million of the day’s redemptions, partly offset by a $22.1 million inflow into Morgan Stanley’s Bitcoin ETF.

Across the first six settled trading sessions of November, spot Bitcoin ETFs registered approximately $1.48 billion of net outflows. BlackRock’s IBIT suffered around $1.42 billion of withdrawals, while only one of those six sessions produced a net inflow for the overall ETF group.

ETF flows do not determine Bitcoin’s price by themselves, but persistent redemptions remove an important source of demand. The combination of institutional outflows and tighter monetary policy expectations makes it more difficult for Bitcoin to establish a durable recovery.

Can Bitcoin Hold the $73,000 Support Level?

Bitcoin is testing one of its most important technical areas of the current correction.

The 200-day moving average is situated near $73,200, while $73,000 also corresponds with previous market highs and lows that could attract buyers. A daily close below this area would weaken Bitcoin’s technical structure and increase the risk of another liquidation-driven decline.

Analysts cited by The Block identified approximately $69,000 as the next important downside area if $73,000 fails. That level is close to Bitcoin’s 2021 cycle high and could act as a longer-term support zone.

Immediate levels to monitor include:

• $74,000-$75,000: The first resistance zone Bitcoin must recover.
• $73,200-$73,000: The 200-day moving average and primary support area.
• $70,000-$69,000: The next potential downside target if selling accelerates.
• $77,000: A recovery above this level would begin to improve short-term momentum.

Options positioning also reflects caution. Put options have been trading at a premium to calls, with the November 13 $74,000 put among the market’s most active contracts before the CPI release.

Ether and Solana Fall With Bitcoin

The sell-off extended across the broader cryptocurrency market.

Ether dropped approximately 3.7% to around $2,042, bringing the psychologically important $2,000 level into focus. A decisive break below that threshold could expose approximately $1,800.

Solana declined more than 4% and traded below $83. The sharper losses in major altcoins demonstrate that investors are reducing exposure to higher-risk crypto assets rather than rotating out of Bitcoin alone.

What Comes Next for the Bitcoin Price?

The next major US inflation event is Friday’s Producer Price Index. Another upside surprise could reinforce expectations for a December rate hike and keep Bitcoin under pressure.

ETF flows will also be closely watched. A return to sustained inflows could help Bitcoin defend $73,000, while continued withdrawals would increase the risk of a move toward $70,000.

In the near term, Bitcoin must reclaim $74,000 and then $75,000 to stabilize the market. Until that happens, higher Treasury yields, a stronger dollar and tighter Federal Reserve expectations are likely to limit recovery attempts.

Crypto markets move around the clock. Explore selected cryptocurrency CFDs available for 24/7 trading on Markets.com and take positions on rising or falling prices without owning the underlying crypto assets. Eligible new clients can unlock up to $5,000 in combined rewards.