Unexpectedly high U.S. inflation puts pressure on Bitcoin (BTC)!
On Wednesday (the 14th), the U.S. Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) for September. The headline CPI rose by 3.7% year-on-year, exceeding the market expectation of 3.6%, while the core CPI increased by 2.6% year-on-year, surpassing the projected 2.5%. Following the release, U.S. Treasury yields climbed, and market expectations for a Federal Reserve (Fed) interest rate hike in October intensified. Bitcoin retreated from approximately $83,350—the level seen just before the announcement—and fell below the $83,000 mark.
BTC drops by nearly $600, slipping below the $83,000 level
According to price snapshots from Binance, Bitcoin was trading at approximately $83,350 at 8:19 PM (Taiwan Time), just before the CPI data was released. By 8:45 PM, the price had fallen to $82,762.83—a decline of about $587, or roughly 0.70%.
Data from Binance for the same period shows that BTC has fallen by approximately 0.44% over the past 24 hours, with a trading volume of about $26.9 billion.
It is worth noting that while BTC has dipped below $83,000, there is currently no clear evidence of widespread panic selling in the market. In the short term, the key focus will be whether the price can reclaim the $83,000 level and maintain support above the $80,000 psychological threshold. Gasoline Prices Surge 9.1%; Core Inflation Also Unexpectedly Heats Up
According to official data from the Bureau of Labor Statistics (BLS), the U.S. Consumer Price Index (CPI) rose 0.6% month-over-month in September, up from 0.4% in August. The core CPI—which excludes food and energy—increased by 0.3% for the month, surpassing the market expectation of 0.2%.
Notably, gasoline prices jumped 9.1% in a single month, accounting for more than half of the total monthly increase in the CPI. The energy index rose 5.2% month-over-month and 20.4% year-over-year.
However, inflation is not being driven solely by oil prices. Housing costs climbed 0.4% for the month, while prices for used cars, airline tickets, medical services, and leisure-related items also saw increases—indicating that underlying inflationary pressures have yet to subside.
Probability of a Fed Rate Hike Jumps from 22% to 45%; U.S. Stock Futures Turn Lower
The latest CPI figures have forced the market to reassess the Federal Reserve’s interest rate policy.
According to the Financial Times, following the release of the inflation data, the probability that traders assign to a Federal Reserve rate hike in October climbed from approximately 22% to 45%. The U.S. dollar strengthened, and yields on U.S. Treasury bonds rose.
U.S. stock futures also faced selling pressure. A market snapshot from Reuters taken after the data release showed Dow futures down about 0.16%, S&P 500 futures down 0.24%, and Nasdaq 100 futures down approximately 0.49%.
The Federal Reserve’s next interest rate decision is scheduled for October 27–28. With both headline and core inflation coming in higher than expected, market concerns regarding another rate hike have intensified—a factor that may continue to weigh on the performance of risk assets, such as U.S. stocks and Bitcoin, in the near term.