Bitcoin Plunges Below Key Support Level Amid Favorable Inflation Data
Bitcoin has taken another significant hit, falling to levels not seen since early August. The price has dipped to $62,500, erasing several weeks of consolidation and breaking below critical support levels.
This move is striking because the latest US inflation figures came in favorable, which should have provided a tailwind for risk assets. However, Bitcoin chose to ignore this positive macro signal entirely.
The S&P 500 and Nasdaq continue to hover near their all-time highs, while BTC is moving in the opposite direction. This decoupling between Bitcoin and traditional markets is raising eyebrows, as BTC is often described as a high-beta asset that responds positively to favorable liquidity conditions.
From a technical standpoint, the $62,000-$63,000 zone represents a major support level. A decisive daily close below this range would open the door toward $60,000, a key psychological level and historically significant demand zone.