Analyst: Bitcoin faces the test of the U.S. CPI, but a lasting recovery requires improved liquidity and ETF demand

According to CoinDesk, Bitcoin traded below $75,000 on Tuesday morning as the market awaited the U.S. October CPI data. Economists expect the overall CPI to rise 0.3% month-over-month, with core CPI rising 0.2%, both slowing compared to September. Due to the U.S. government shutdown last October, the Bureau of Labor Statistics was unable to compile a complete index, so there is no year-over-year data this time.

BRN analysts stated that any easing of inflation expectations would benefit risk assets, but Bitcoin needs real buying pressure. Until ETF fund flows turn positive and the Federal Reserve shifts to a dovish stance, the path of least resistance remains downward. Bitget Wallet analysts believe that moderate inflation data could trigger a brief rebound, but Bitcoin's sustained recovery depends on improved liquidity and spot demand. Analysts pointed out that if Bitcoin closes below $73,000 on a daily basis, it could trigger momentum selling down to $70,000; the $73,000 to $74,000 range is a key support zone, and reclaiming and holding above $80,000 would indicate increased demand.