Bitcoin remained under pressure below $75,000 on Tuesday as investors prepared for the release of October’s U.S. inflation figures. Analysts cautioned that even a softer CPI reading may not be enough to support a lasting recovery, arguing that stronger liquidity conditions and renewed spot Bitcoin ETF inflows are more important for restoring market momentum.
The largest cryptocurrency by market capitalization traded near $74,750 at the time of writing, representing a 0.6% decline since midnight UTC. Bitcoin briefly moved above $75,000 during overnight trading before losing momentum.
The October Consumer Price Index (CPI) report, scheduled for 8:30 a.m. ET, is expected to show a 0.3% monthly increase in headline inflation. Core CPI, which excludes volatile food and energy prices, is forecast to rise 0.2%, according to Dow Jones consensus estimates. Both projections indicate slower price growth compared with September’s respective increases of 0.6% and 0.3%.
However, October’s inflation report will not include a year-over-year comparison. The government shutdown during October last year prevented the Bureau of Labor Statistics from collecting a complete index reading, leaving no comparable annual baseline.
Bitcoin Investors Look for Inflation Relief
The inflation announcement arrives as Bitcoin struggles to regain its upward momentum. BTC has remained in a short-term downtrend since reaching above $87,000 in early October, with uncertainty surrounding artificial intelligence-related investments also weighing on broader financial markets.
Meanwhile, spot Bitcoin exchange-traded funds (ETFs), which had been an important source of institutional demand supporting the market’s rally, have experienced weaker inflows. This has left Bitcoin increasingly dependent on improving macroeconomic conditions and stronger direct buying activity to recover.
Analysts believe a softer inflation reading could provide temporary support for risk assets, but they warn that a sustainable Bitcoin rally requires a meaningful improvement in ETF demand.
BRN analysts noted that declining inflation expectations could benefit risk-sensitive investments. However, they emphasized that Bitcoin needs consistent buying pressure rather than a short-lived boost from favorable economic data. Until ETF flows recover and the Federal Reserve adopts a more accommodative stance, downward pressure could remain.
Bitget Wallet analysts shared a similar assessment, describing the latest inflation report as another important test for cryptocurrency markets.
They warned that hotter-than-expected inflation could strengthen expectations of a December interest rate increase, while softer core inflation might trigger a temporary recovery. Nevertheless, they stressed that Bitcoin’s longer-term rebound will depend on stronger liquidity and spot market demand rather than inflation relief alone.
October’s CPI release is also the first in a series of important economic events scheduled for the coming weeks. U.S. producer price index data is due November 13, minutes from the Federal Reserve’s October meeting will be published November 18, and the Personal Consumption Expenditures (PCE) inflation report, the central bank’s preferred inflation measure, is scheduled for November 25.
Moon Pursuit Capital founder and managing partner Utkarsh Ahuja also warned that persistent inflation could restrict the Federal Reserve’s ability to support financial markets, even if technology stocks experience further weakness.
He pointed to recent remarks from San Francisco Federal Reserve President Mary Daly about the possibility of additional rate increases, suggesting investors should not automatically expect the central bank to intervene with monetary support.
Ahuja also highlighted the financing challenges facing capital-intensive artificial intelligence projects. Higher borrowing expenses and extended approval timelines could reduce investment returns, even when demand remains strong. Companies seeking additional funding before existing projects begin generating cash may also face execution challenges and uncertainty over future financing costs.
Bitcoin Price Levels: Analysts Watch $73,000 Support
Market analysts are closely monitoring the $73,000 level as an important threshold for Bitcoin’s near-term direction.
BRN warned that a daily UTC close below $73,000 could accelerate momentum-driven selling and push BTC toward $70,000. A deeper correction could potentially expose price levels below $60,000, near the lows recorded in July.
The firm described Bitcoin’s recent recovery from below $74,000 as a temporary pause within an ongoing downtrend rather than evidence of a confirmed bullish reversal.
Bitget Wallet analysts also identified the $73,000-$74,000 range as a critical support area. According to their assessment, a more sustainable recovery would require balanced positioning in derivatives markets and consistent positive flows into spot Bitcoin ETFs.
On the upside, reclaiming $80,000 and maintaining that level would indicate improving demand and provide stronger evidence of a potential trend reversal.
The analysts also warned that a decisive breakdown below $73,000 could expose Bitcoin to further losses toward $68,000. If that support level also fails, the decline could indicate a broader market weakness rather than a temporary liquidation-driven correction.
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