Bitcoin and Nvidia take fresh knock as inflation shock sends crypto towards $73.000

The Bitcoin price has come under renewed pressure after new US inflation figures came in higher than economists had expected. The largest cryptocurrency fell towards the key support level of $73.000.

The figures confirm that inflation in the United States remains more persistent than hoped. That is bad news for financial markets, because the Federal Reserve would normally seek to bring inflation back towards its 2% target.

When prices continue to rise too quickly, the Fed has less room to cut interest rates. Indeed, a fresh rate increase could come back onto the table. Higher rates make savings and bonds more attractive, while risky investments such as growth stocks and cryptocurrencies lose appeal.

Nvidia

Bitcoin was already in a vulnerable position before the inflation figures. Analysts had identified $73.000 as an important support level and warned that a convincing break below it could trigger a new wave of selling. In early November, about $1.28 billion also flowed out of US spot Bitcoin ETFs, suggesting institutional investors had become more cautious.

At the same time, the technology sector remains nervous. Nvidia and other AI stocks have become a source of unease on Wall Street in recent weeks. That nervousness is also affecting Bitcoin. The recent weakness in tech stocks had already been cited as a factor behind the declining crypto market.

For Bitcoin investors, attention is therefore shifting back to the Fed.

As long as inflation remains high, positive ETF inflows fail to return and the central bank gives no clear signal, a sustained recovery will remain difficult. Analysts see a return of genuine buying pressure as crucial for a new rally. In the coming days, it will be very important for Bitcoin to hold the $71.000 level.