Bitcoin Price Under Pressure from Inflation and USDT Contraction

Bitcoin's price has been affected by two significant factors: hotter inflation and a rare USDT supply contraction. Hotter inflation has reduced expectations of quick rate cuts, leading to an increase in yields and the U.S. dollar, which tends to cool risk appetite.

The rare USDT supply contraction points to thinner crypto liquidity, weighing on bids and making intraday moves sharper. This combination of factors is causing Bitcoin's price to drop, with the $65,000 level becoming a crucial point for its short-term trend.