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Crypto Market Dips as Inflation Fears and ETF Outflows Weigh on Bitcoin

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The crypto market is under pressure, with Bitcoin dropping below $73,000 and major altcoins also declining. The selling intensified in derivative markets, with over $723 million in liquidations in the past 24 hours. Spot Bitcoin ETF withdrawals have raised concerns about institutional demand.

The downturn follows higher-than-expected US inflation data, which has increased fears of another Federal Reserve rate hike in December. This has weakened investor appetite for risk-sensitive assets like cryptocurrencies. Institutional investors have been reducing their exposure to crypto investment products, contributing to the selling pressure.

Total crypto liquidations reached approximately $742 million over the past 24 hours, with long positions accounting for more than $571 million. Ethereum saw the highest long liquidation of $261.16 million, while Bitcoin faced $207.11 million. Over 115,000 traders were affected during this period.

Bitcoin is trading around $73,770, down 1.44% on the weekly candle, with sellers pushing the price below the 20-week moving average. The broader price structure remains bearish, as Bitcoin continues to trade within a descending channel. The near-term direction will depend on whether buyers can defend the $72,700 support zone or if continued macroeconomic uncertainty and leveraged selling push prices lower.

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