Bitcoin Slides as Investors Favor Gold and Bonds
Bitcoin fell more than 2% in 24 hours on October 15, briefly touching about $80,250, after stronger-than-expected U.S. inflation raised fears of another Federal Reserve rate hike. Risk assets weakened broadly, with S&P 500 futures down about 0.3%, copper losing over 1%, and 10-year Treasury yields near 5.08%, while spot gold rose about 1.3% above $4,150 an ounce. The $80,000 level is seen as key, with a possible drop toward $75,000 if it fails.
Bitcoin’s decline came with sharper drops in ether, XRP and solana. S&P 500 futures slipped about 0.3%, Asian tech shares weakened, and copper fell over 1% after a 1.6% prior-day loss. Ten-year Treasury yields were near 5.08%, while spot gold rose about 1.3% above $4,150 an ounce.
U.S. consumer prices rose 0.6% in September and 3.7% annually, above the expected 3.6%. Gasoline jumped 9.1% in a month, reviving fears of another Fed rate increase. Higher rates can make bonds and cash-like assets more attractive and curb liquidity for speculative holdings. The $80,000 level is seen as key, with $75,000 possible if it fails.
A sustained Bitcoin pullback could affect retail and institutional crypto holders through portfolio losses and reduced trading activity. Companies with crypto exposure, payment platforms and miners may face tighter financing if rates stay high. Households already strained by inflation might become more cautious about speculative investments, while demand for gold and bonds may rise. If $80,000 fails, market confidence could weaken further, though the outcome remains uncertain.