Bitcoin drops below $83,000 after US inflation surprise raises Fed rate fears
Bitcoin fell below $83,000 on Wednesday after US inflation data came in hotter than expected. September CPI rose 3.7% year over year, while core CPI increased 2.6%, both above forecasts. Traders are now worried the Federal Reserve may raise rates further, adding pressure to an already fragile crypto market.
Bitcoin slipped below $83,000 after trading near $83,500 earlier. September headline CPI rose 3.7% year over year, above the 3.6% forecast and August’s 3.4%; monthly prices increased 0.6% as expected. Core CPI, excluding food and energy, was 2.6% annually versus 2.5% expected and 2.4% previously, with a 0.3% monthly gain above the 0.2% estimate.
The data arrived after crypto’s recent weakness: on October 7, bitcoin had fallen below $84,000 amid $547 million in liquidations. US equity futures also eased, with Nasdaq 100 down about 0.5%. Before CPI, markets mostly expected a Fed pause on October 28; afterward, October hike odds reportedly climbed from roughly 22% to 45%.
Higher-than-expected inflation and renewed Fed rate uncertainty could weigh on crypto investors, especially leveraged traders facing possible liquidations. Retail holders may see sharper portfolio swings, while businesses accepting bitcoin might face more volatile payment values. If rate fears persist, some savers and institutions may favor yield-bearing, lower-risk assets over speculative tokens. The broader effect may be cautious sentiment across digital-asset markets, though outcomes depend on future data and Fed decisions.