bitcoin slid to about $73,000 on Tuesday after the latest US inflation report came in hotter than expected.
The drop (from $74,300 earlier) means bitcoin has lost over 11% in just a month.
The higher inflation numbers have many worried that the Federal Reserve might raise interest rates more sharply in December.
US bitcoin funds see $201 million outflows
October's report showed consumer prices up 0.4% and core inflation up 0.3%, both above forecasts.
This has made a bigger rate hike (possibly 0.5%) more likely, which could push investors toward safer, interest-paying options instead of crypto.
On Monday, US bitcoin funds saw $201 million pulled out as BlackRock's iShares Bitcoin Trust recorded $213.2 million in withdrawals as people reacted to the news.
Analysts warn bitcoin may test $70,000
Analysts say there's a real chance bitcoin could slip further toward $70,000 if economic signals stay shaky or if the Fed hints at more aggressive moves.
With crypto markets being famously unpredictable, everyone's watching for what comes next.