Key Facts

  • Bitcoin fell to $73,543 after the October CPI report, its lowest since Aug. 21 and about $400 above its 200-day moving average, CoinMarketCap data show.

  • Core CPI rose 0.3% against 0.2% expected, meeting Fed Governor Christopher Waller's threshold for considering a 50 basis point hike in December.

  • IG's Axel Rudolph has warned that two daily closes below the 200-day average near $73,150 would likely bring another bout of selling.

Bitcoin fell to $73,543 after the October CPI report, its lowest since Aug. 21 and about $400 above its 200-day moving average, CoinMarketCap data show.

Core CPI rose 0.3% against 0.2% expected, meeting Fed Governor Christopher Waller's threshold for considering a 50 basis point hike in December.

IG's Axel Rudolph has warned that two daily closes below the 200-day average near $73,150 would likely bring another bout of selling.

Core prices rose 0.3% in October, the level at which Waller said hours earlier that a 50 basis point hike "should be considered" at the Fed's December meeting. Bitcoin slid with stock futures as Treasury yields rose, and about $178 million in bets on higher crypto prices were forcibly closed within an hour. IG's Axel Rudolph has warned that two daily closes below the 200-day line would likely bring more selling.

Waller set the bar in a speech in London before the data.

What Did CPI Show? Core Inflation at Waller's 0.3% Line

Core inflation has now held at that pace since August.

Waller had said he would back a rate increase in December even if October's reading improved.

How Did Bitcoin React? Lower With Stocks as Yields Rose

Stocks fell too. Nasdaq futures dropped, Treasury yields climbed and the dollar strengthened, Yahoo Finance data show.

Who Sold? Leveraged Longs and Fund Investors

On-chain analytics firm Glassnode sees the flush as partial.

What Would Break Support? Two Closes Below $73,150

Bitcoin traded at $73,909 at 9:51 a.m. ET on Tuesday, CoinMarketCap data show.

The 200-day average sits near $73,150. Rudolph's next target below it is the April low near $70,500.

The Fed's next rate decision is due Dec. 9. Until then, Bitcoin sits within reach of the 200-day line.