Bitcoin Plunge Ahead of CPI Data
Bitcoin has taken a hard hit, plunging below $80,000. Traders are on edge as selling pressure mounts. The crypto market as a whole has lost billions, and altcoins are feeling the heat. This latest dip comes despite the announcement of a strategic Bitcoin reserve. Even with positive crypto developments, the broader sentiment remains bearish.
Why Bitcoin and Crypto Prices Are Falling
The entire crypto market is facing downward pressure. Over the past 24 hours, more than $600 million has been liquidated. Analysts highlight that Bitcoin long positions worth over $1 billion have been wiped out. The release of the U.S. non-farm payrolls (NFP) report has fueled concerns about the Federal Reserve’s next move. Trump’s latest trade tariff plans have also added macroeconomic pressure. All these factors have combined to push Bitcoin prices lower.
Will Bitcoin Plunge to $75,000 Before CPI Release?
Bitcoin is struggling to hold key support levels. A rejection at $92,500 has extended its losses to over 11% this week. Technical analysts warn that Bitcoin’s chart is showing a bearish pennant pattern. Veteran trader Peter Brandt believes this formation signals further downside. If BTC breaks below $78,000, $75,000 could be the next target. Former BitMEX CEO Arthur Hayes has also warned of more pain ahead. If BTC enters the $70,000-$75,000 range, volatility could spike even higher.
Bitcoin ETFs See Major Outflows
Institutional interest in Bitcoin is fading. Bitcoin spot ETFs have seen a massive $799 million in outflows in just a few days. Investors are pulling money out, reflecting weakening confidence in BTC. Fidelity’s Bitcoin ETF alone lost $201 million. The outflows show that institutional investors are not betting on a quick recovery. If this trend continues, Bitcoin’s price could face even more selling pressure.
CPI Data Holds the Key to Bitcoin’s Next Move
The upcoming U.S. Consumer Price Index (CPI) report is the next big event for BTC. Inflation data will determine the Federal Reserve’s stance on interest rates. If inflation remains high, the Fed may continue its hawkish approach. That could further weaken Bitcoin’s appeal as an alternative asset. However, if inflation shows signs of slowing, the market could find relief. Investors are closely watching the data release, as it could dictate Bitcoin’s next major move.
Final Thoughts
Bitcoin’s plunge below $80,000 has shaken the market. With heavy liquidations, ETF outflows, and technical warning signs, the outlook remains uncertain. The upcoming CPI report could make or break Bitcoin’s short-term trajectory. If the data disappoints, Bitcoin could drop to $75,000 or lower. But if inflation fears ease, BTC might stabilize. For now, traders should brace for more volatility ahead.
