Bitcoin Drops to $73,000 Amid U.S. Inflation Concerns

Bitcoin, which had fluctuated between $74,000 and $75,000 following the U.S. midterm elections, has fallen back to the $73,000 range. This decline is attributed to the October Consumer Price Index (CPI) in the U.S. exceeding market expectations, raising concerns about further interest rate hikes by the Federal Reserve.

As of 8 a.m. on November 11, Bitcoin was trading at $73,616.05, down 2.10% from the previous day, according to global cryptocurrency market site CoinMarketCap.

Major altcoins also experienced declines. Ethereum, the second-largest cryptocurrency by market capitalization, fell 4.08% to $2,046.36. Ripple (XRP) dropped 4.26% to $1.05, while Solana decreased by 4.55% to $82.86. Binance Coin (BNB) was down 1.81% at $677.65.

The weakness in the cryptocurrency market is linked to the October CPI data, which showed a 0.4% increase from the previous month. Although this was lower than the 0.6% rise in September, it surpassed the Dow Jones estimate of 0.3% by 0.1 percentage points. The core CPI, excluding volatile food and energy prices, also rose by 0.3%, exceeding the market expectation of 0.2%.

The higher-than-expected inflation rate has increased the likelihood of additional interest rate hikes by the Federal Reserve. Consequently, investor sentiment towards risk assets has weakened, putting downward pressure on cryptocurrency prices, including Bitcoin.

The CoinMarketCap 'Fear & Greed Index,' which reflects market sentiment, recorded a score of 26, indicating a state of 'fear.' A score closer to 0 signifies extreme fear, while a score near 100 indicates extreme greed.

Meanwhile, on the domestic cryptocurrency exchange Upbit, Bitcoin was trading at 100 million won, down 0.90% from the previous day. It fluctuated around the 100 million won mark, dipping as low as 99.91 million won during the day. The Kimchi Premium, which indicates the price difference of Bitcoin between domestic and international markets, was recorded at 1.116%.