Bitcoin slips to $73,500 as hot US inflation revives half-point Fed hike bets
Bitcoin traded near $73,500 on Tuesday, down about 1% over the day, after a hotter-than-expected US inflation print revived bets on a half-point Federal Reserve rate hike next month. The coin had been holding near $74,300 minutes before the 8:30 a.m. ET release, then dropped to about $73,400, briefly undercutting Monday's overnight low of $73,477.
The US consumer price index rose 0.4% in October, above the 0.3% economists expected, while core CPI climbed 0.3% against forecasts for 0.2%. Food prices jumped 0.5% on the month, energy rose 0.7% and gasoline gained 1.0%. The report carries no annual inflation rate: the October 2025 government shutdown kept the Bureau of Labor Statistics from collecting a full set of prices. Bank of America had estimated before the release that annual rates were running near 3.8% for headline and 2.7% for core.
Bond traders moved first. Two- to five-year Treasury yields rose at least 10 basis points, and traders boosted bets on a half-point hike when the Fed meets on Dec. 9. Hours earlier, Fed Governor Christopher Waller said he is "leaning toward" a December increase and would back "more robust action" if inflation ran hotter than expected. "In that case, I believe a 50 basis point hike in the policy rate should be considered at the December meeting," he said. "Hiking only 25 basis points would put our credibility at risk, a risk I am not eager to take."
Higher rates raise the cost of holding an asset that pays no yield, and that maths has capped bitcoin since Friday's strong jobs report. Fund demand has not cushioned the drop: US spot bitcoin ETFs shed $201 million on Monday, led by $213.2 million leaving BlackRock's iShares Bitcoin Trust, its seventh straight session of redemptions. Ether fell about 1.4% to near $2,100 overnight as US spot ether ETFs lost $184.6 million.
Bitcoin has drifted lower since peaking above $87,000 in early October and sits roughly $32,000 below its price a year ago. Analysts flag $73,000 as the line to watch: a daily close below it could open the way to $70,000, while reclaiming $80,000 would point to stronger demand. Producer price data lands Friday, followed by minutes from the Fed's October meeting on Nov. 18.
What it means for Pakistan: For Pakistani holders and peer-to-peer traders, the move matters through the rupee price they see rather than the dollar one: a softer bitcoin and a firming dollar both weigh on local valuations, and the State Bank's restrictions on bank channels for crypto mean most exposure runs through informal P2P and offshore accounts. A Fed hike would also tighten global liquidity and add pressure on the rupee, the cost of imported goods and remittance-dependent households, while any sharper slide in bitcoin prices would hit the many small retail buyers who entered near recent highs.
