Bitcoin remained under selling pressure below $75,000 on Tuesday as traders awaited the October U.S. inflation report for clues about the Federal Reserve’s upcoming interest rate decisions. Analysts cautioned that even a better-than-expected CPI reading may deliver only temporary relief, arguing that stronger liquidity and renewed demand for spot Bitcoin ETFs will be necessary to support a sustainable market recovery.
The leading cryptocurrency traded near $74,750 at the time of writing, slipping 0.6% since midnight UTC. Although BTC briefly crossed the $75,000 mark during overnight trading, buyers struggled to maintain the upward momentum.
The October Consumer Price Index (CPI) report is scheduled for release at 8:30 a.m. ET. Dow Jones estimates indicate that headline inflation could increase 0.3% month over month, while core CPI, which excludes food and energy costs, is projected to rise 0.2%. Both figures would represent slower growth than September’s increases of 0.6% and 0.3%, respectively.
There will be no annual inflation comparison in the October release. A government shutdown during the same period last year prevented the Bureau of Labor Statistics from collecting a complete index reading, leaving the agency without a comparable baseline.
Bitcoin Recovery Depends on More Than Softer Inflation
Bitcoin is approaching the latest inflation announcement from a position of weakness. BTC has struggled to recover since reaching above $87,000 in early October, with concerns about the artificial intelligence sector contributing to broader risk-market volatility.
Demand from spot Bitcoin exchange-traded funds has also weakened. These investment products previously provided an important source of institutional capital, helping support Bitcoin’s rally. Their recent slowdown has left the cryptocurrency needing stronger spot market purchases and improved macroeconomic conditions to regain its upward momentum.
BRN analysts believe a decline in inflation expectations could benefit risk assets, including Bitcoin. However, they warned that favorable economic figures alone cannot establish a lasting recovery.
According to the analysts, consistent buying activity is essential, while a return to positive ETF flows and a more accommodative Federal Reserve policy would help improve market conditions. Without these developments, Bitcoin could continue facing downside pressure.
Bitget Wallet analysts also highlighted the importance of this week’s inflation figures. They warned that higher-than-expected readings could strengthen expectations of a December interest rate increase, potentially creating additional pressure on cryptocurrencies. A softer core CPI figure, meanwhile, could encourage a short-term relief rally.
However, they emphasized that Bitcoin needs better liquidity conditions and stronger spot demand to sustain any recovery rather than relying exclusively on favorable inflation data.
Investors will also have several other economic releases to monitor. U.S. producer price index figures are scheduled for November 13, followed by the Federal Reserve’s October meeting minutes on November 18. The Personal Consumption Expenditures (PCE) index, which serves as the Fed’s preferred inflation gauge, is due on November 25.
Moon Pursuit Capital founder and managing partner Utkarsh Ahuja warned that persistent inflation could restrict the Federal Reserve’s ability to provide additional economic support, even if technology stocks experience further losses.
He pointed to comments from San Francisco Fed President Mary Daly about the possibility of additional interest rate increases, cautioning that investors should not automatically expect a central bank intervention.
Ahuja also discussed the financing challenges facing large artificial intelligence projects. Higher borrowing costs and longer approval timelines could weaken investment returns, even when demand remains healthy. Companies requiring additional funding before their existing projects generate cash flow could face greater execution risks and uncertainty surrounding future financing conditions.
Bitcoin Price Faces Critical Support Near $73,000
Market participants are closely watching the $73,000-$74,000 range as a key support zone for Bitcoin’s next move.
BRN analysts warned that a daily close below $73,000 could accelerate selling pressure and send BTC toward $70,000. A more severe correction could expose levels below $60,000, bringing Bitcoin closer to its July price lows.
The firm also characterized the recent rebound from below $74,000 as a temporary interruption in the broader downtrend rather than a confirmed shift toward bullish momentum.
Bitget Wallet analysts have identified the same $73,000-$74,000 region as an important level for market stability. They believe a recovery will require healthier derivatives positioning alongside sustained positive inflows into spot Bitcoin ETFs.
On the upside, Bitcoin would need to reclaim $80,000 and maintain support above that level to demonstrate a meaningful improvement in buying demand.
Conversely, a decisive breakdown below $73,000 could expose BTC to another decline toward $68,000. If buyers fail to defend that level, analysts warn that the weakness could reflect a broader market correction rather than a short-lived liquidation event.
