Bitcoin continued to struggle below $75,000 on Tuesday as market participants positioned themselves ahead of the October U.S. inflation report. The upcoming CPI figures could influence expectations for the Federal Reserve’s next policy move, but analysts warned that cooling inflation may not be enough to reverse Bitcoin’s recent weakness. They believe a stronger recovery will require improved market liquidity and renewed institutional demand through spot Bitcoin ETFs.

BTC was trading at approximately $74,750, down 0.6% since midnight UTC. The cryptocurrency briefly moved above $75,000 during overnight trading before retreating as buyers failed to sustain the recovery.

The October Consumer Price Index (CPI) report is due at 8:30 a.m. ET. According to Dow Jones consensus forecasts, headline inflation is expected to increase 0.3% from the previous month, while core CPI, which excludes food and energy prices, is projected to rise 0.2%. These estimates indicate a moderation from September’s respective increases of 0.6% and 0.3%.

The report will not contain a year-over-year inflation reading because last year’s government shutdown prevented the Bureau of Labor Statistics from collecting a complete index level for October, making an annual comparison unavailable.

Bitcoin Needs Stronger Buying Demand Beyond CPI Relief

The latest inflation release arrives as Bitcoin faces continued downward pressure. BTC has struggled to recover since reaching above $87,000 in early October, while uncertainty surrounding artificial intelligence investments has contributed to volatility across traditional financial markets.

Weakening demand for spot Bitcoin exchange-traded funds has added another challenge. ETF purchases previously played a significant role in supporting Bitcoin’s rally, but the recent slowdown has reduced an important source of institutional demand.

BRN analysts believe a softer inflation reading could improve sentiment across risk-sensitive markets. However, they cautioned that Bitcoin needs sustained buying activity to establish a meaningful recovery.

They argued that positive ETF inflows and a shift toward more accommodative Federal Reserve policy would be necessary to improve the market outlook. Without these conditions, Bitcoin could remain exposed to further declines despite temporary relief from favorable economic data.

Bitget Wallet analysts also warned that the October CPI report could create another period of volatility. Higher inflation figures may strengthen expectations of a December rate increase, potentially putting additional pressure on cryptocurrencies. Conversely, weaker core inflation could encourage a short-term rebound.

Nevertheless, they stressed that a lasting recovery depends on stronger liquidity and consistent spot market demand rather than an isolated improvement in inflation.

Several additional economic releases could influence market sentiment over the coming weeks. U.S. producer price data is scheduled for November 13, the Federal Reserve’s October meeting minutes will be released on November 18, and the November 25 Personal Consumption Expenditures (PCE) report will provide another important inflation assessment.

Moon Pursuit Capital founder and managing partner Utkarsh Ahuja also warned that persistent price pressures could limit the Federal Reserve’s ability to support financial markets, even if technology stocks experience further declines.

Ahuja referenced recent remarks from San Francisco Fed President Mary Daly concerning the possibility of additional rate increases. He cautioned against assuming that the central bank would quickly step in to stabilize markets.

He further explained that rising financing costs could create difficulties for capital-intensive artificial intelligence projects. Higher borrowing expenses and extended approval processes may reduce expected returns, while companies requiring additional capital before generating cash flow could face greater financial and execution risks.

Bitcoin Could Drop Toward $68,000 if $73,000 Support Breaks

Bitcoin’s immediate price outlook increasingly depends on its ability to defend the $73,000-$74,000 support region.

BRN analysts warned that a daily close below $73,000 could trigger additional momentum-driven selling, potentially pushing BTC toward $70,000. If bearish pressure intensifies, the cryptocurrency could eventually revisit levels below $60,000, near its July lows.

The firm described Bitcoin’s recent recovery from below $74,000 as a temporary bounce within an ongoing downtrend rather than a confirmed bullish reversal.

Bitget Wallet analysts also identified the $73,000-$74,000 range as a crucial area for maintaining market stability. They believe a stronger recovery would require healthier positioning in derivatives markets and consistent positive flows into spot Bitcoin ETFs.

On the bullish side, reclaiming $80,000 and holding above that threshold would provide stronger evidence of renewed buying interest.

However, a decisive breakdown below $73,000 could expose Bitcoin to a decline toward $68,000. Losing that additional support would suggest that the market is experiencing a deeper correction rather than simply clearing excessive leveraged positions.