Bitcoin Price Dips as Investors Await U.S. Inflation Data
Bitcoin price slips despite stock market recovery
Bitcoin fell to approximately $74,200 on Tuesday as traders prepared for the release of new U.S. inflation data. The decline occurred despite a recovery in the U.S. stock market on Monday, where the S&P 500 had its strongest day since early April.
The price of Bitcoin reached an overnight low of $74,100. Other major cryptocurrencies also saw declines, with Ether dropping 1.4% to trade near $2,100.
Key market highlights
- Bitcoin reached an overnight low of $74,100.
- U.S. spot Bitcoin ETFs lost $201 million in a single day.
- U.S. spot Ether ETFs saw outflows totaling $184.6 million.
- Avalanche (AVAX) increased by 5% over 24 hours.
- Crypto futures liquidations dropped 84% to $184 million.
Heavy outflows from spot Bitcoin and Ether ETFs
Investors pulled significant capital out of exchange-traded funds (ETFs) on Monday. An ETF is a type of investment fund that is traded on a stock exchange, allowing people to invest in assets like Bitcoin without owning the digital currency directly.
BlackRock’s IBIT fund led the Bitcoin outflows, losing $213.2 million. This marked the seventh consecutive session of redemptions for the fund. Similarly, Ether ETFs saw nearly $185 million in outflows during the same period.
Investors look toward inflation data
The market is closely watching the U.S. consumer price index (CPI) report, which measures changes in the cost of living. Economists expect the report to show that headline inflation rose by 0.3% in October, while core inflation is expected to rise by 0.2%.
If these estimates are accurate, inflation will have slowed compared to September, when headline and core inflation rose by 0.6% and 0.3%, respectively.
Market trading volume and liquidations slow down
Trading activity cooled significantly as liquidations fell to $184 million from over $1 billion the previous day. Liquidations happen when an exchange forcedly closes a trader's position because they no longer have enough money to cover potential losses.
Despite the price dip, the amount of money held in active futures contracts—known as open interest—rose slightly for Bitcoin, Ether, and Solana. This suggests that new capital is still entering the market even as prices remain flat or fall.
Avalanche gains on NYSE platform news
The Avalanche (AVAX) token was one of the few major assets to rise, gaining 5% in value. This followed news that the New York Stock Exchange has chosen the Avalanche blockchain to settle trades on a new platform for tokenized securities.
A blockchain is a digital, decentralized ledger that records transactions. The planned platform is intended to operate 24 hours a day, 7 days a week.
Upcoming economic timeline
The U.S. consumer price index report is scheduled for release at 13:30 UTC today. Traders are expected to use this data to gauge the health of the economy and decide their next moves in the crypto market.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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