Bitcoin Price Drops Near $73,500

Bitcoin price traded near $73,500 on Tuesday morning, down about 1% over the past day, after a hotter-than-expected inflation report revived fears of a larger Federal Reserve rate hike. The U.S. consumer price index rose 0.4% in October, above the 0.3% economists expected. Bitcoin price had been holding near $74,300 in the minutes before the 8:30 a.m. ET release. It dropped to about $73,400 right after the print, briefly undercutting Monday’s overnight low of $73,477, before steadying in the high-$73,000s. What This Means: The report will likely impact the Fed's decision on a rate hike, with Governor Christopher Waller saying he is “leaning toward” a December increase and would back “more robust action” if inflation ran hotter than expected. Analysts flagged $73,000 as the line to watch, with a daily close below it potentially opening the way to $70,000.