Bitcoin fell to its lowest level in nearly three months Tuesday as stronger-than-expected US inflation fueled expectations of further Federal Reserve interest rate increases, weighing on demand for risky assets.
The world's largest cryptocurrency dropped as much as 3% to $72,695, taking its year-to-date losses to around 17%.
The decline spread across the cryptocurrency market, with Ether and XRP falling more than 5% each, while Zcash plunged around 14%.
US consumer prices rose 0.4% in October from the previous month, following a 0.6% increase in September, according to the Bureau of Labor Statistics. Core inflation, which excludes food and energy, held at 0.3% for a third consecutive month.
Both readings exceeded market forecasts, which had pointed to increases of 0.3% for headline prices and 0.2% for core prices.
Shelter costs rose 0.3%, accounting for more than 30% of the overall monthly increase, while food prices climbed 0.5% and energy prices advanced 0.7%.
The figures reinforced concerns that persistent price pressures could require tighter monetary policy, reducing investors' appetite for cryptocurrencies and other speculative assets.
Higher interest rates can weigh on cryptocurrencies by increasing returns on interest-bearing assets and tightening financial conditions.
Shares of cryptocurrency-related companies also declined. Bitcoin treasury company Strategy fell around 4.4%, while US cryptocurrency exchange Coinbase lost 4.1% and stablecoin issuer Circle dropped 4.4%.
