Bitcoin price fell to a dangerous point today after US CPI showed hotter-than-expected inflation. BTC price fell below its 200-day moving average of $73,100, which was a major support level.
This shows market demand is fading very quickly.
The same indicator helped support Bitcoin’s recovery in August, which eventually pushed prices to $87,400 in September. Nearly 16.5% of that value has since disappeared.
Why are Bitcoin Buyers Disappearing?
The bigger concern is that money appears to be leaving the crypto market.
According to CryptoQuant, Tether’s USDT market capitalization has fallen by $6.6 billion over the past 60 days. That is more than twice the contraction recorded after FTX collapsed in 2022.
Stablecoins such as USDT provide money that traders can readily use to buy crypto. Shrinking supply can signal weaker buying power, although some funds may have shifted into other stablecoins.
Institutional demand is weakening too. US spot Bitcoin ETFs recorded $1.28 billion in net outflows last week, followed by approximately $201 million on Monday.
Glassnode’s ETF analysis points to sustained selling pressure.
How Low Could Bitcoin Fall?
The next few trading sessions could determine whether Bitcoin faces a deeper correction.
The key price levels are:
- $73,100: The 200-day moving average. A daily close back above it would ease immediate pressure.
- $72,165: The next critical support. Losing it could expose $68,000.
- $66,200–$67,300: A previous resistance zone that could attract buyers.
- $62,750: The August low and a deeper downside target.
Analyst CryptoKid sees limited buying demand before $66,700, although he remains bullish on Bitcoin’s longer-term prospects.
Bitcoin’s RSI is near 33, suggesting the market is approaching oversold conditions. That could encourage a rebound.
However, unless ETF demand stabilizes and market liquidity improves, any recovery may struggle to last.
