Bitcoin's price has dropped to a dangerous level, breaking through a key support level — the 200-day moving average at $73,100. This occurred against the backdrop of the release of US Consumer Price Index (CPI) data, which showed inflation above market expectations.

Market demand is rapidly shrinking. Previously, the same indicator supported Bitcoin's growth in August, which subsequently helped the price consolidate at $87,400 in September. Since then, BTC's value has declined by nearly 16.5%.

Why Bitcoin buyers are disappearing

The main problem is that money is leaving the crypto market. The market capitalization of Tether's USDT stablecoin has decreased by $6.6 billion over the past 60 days. This is more than double the contraction recorded after the FTX collapse in 2022.

Stablecoins such as USDT provide traders with liquidity to buy cryptocurrency. A shrinking supply may indicate weakening buying activity, although some funds may have moved into other stablecoins.

Institutional demand is also declining. US spot Bitcoin ETFs recorded a net outflow of $1.28 billion last week, followed by about $201 million on Monday. Sellers continue to pressure the ETF market.

How low Bitcoin could fall

The coming trading sessions will show whether Bitcoin faces a deeper correction. Key price levels:

  • $73,100: The 200-day moving average. If Bitcoin closes the day above this level, pressure will ease.
  • $72,165: The next critical support. A break below would open the path to $68,000.
  • $66,200–$67,300: A former resistance zone where buyers may emerge.
  • $62,750: The August low and a deeper downside target.

Up to $66,700, buying demand remains limited, while Bitcoin's long-term prospects remain optimistic.

Bitcoin's Relative Strength Index (RSI) is around 33, indicating the market is approaching oversold territory. Such a situation typically creates conditions for a rebound. However, if demand for exchange-traded funds (ETFs) does not stabilize and market liquidity does not increase, even a rebound would be difficult to sustain.

Cryptalist analysis: The combination of signals — contracting stablecoin supply, sustained outflows from spot ETFs, and the break below the 200-day moving average — forms a bearish scenario with a high risk of further decline toward $66,000–$68,000. The RSI's proximity to oversold territory allows for a technical rebound, but without a recovery in liquidity inflows, it will most likely remain short-lived. Market resilience will be determined by the dynamics of institutional demand, not technical indicators alone.