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Bitcoin dips below $80,000 as hot U.S. inflation data revives Fed rate-hike bets
Summary
Bitcoin fell after back-to-back hotter-than-expected U.S. inflation reports this week and briefly slipped below $80,000 on Oct. 15, according to Bitcoin Magazine and Cointelegraph.
Decrypt reported that September CPI came in at 3.7%, above forecasts, and CoinDesk said the data could put multiple Federal Reserve rate hikes back into play.
A day later, September producer prices beat expectations by 100 basis points, the largest monthly gain since March 2022, Cointelegraph reported.
CoinDesk and Decrypt each reported that nearly $1 billion in leveraged crypto positions were liquidated, with CoinDesk saying ether made up nearly 60% of forced closures across the two largest cryptocurrencies.
Decrypt said odds of an October Fed hike rose to 29% from 18% a week earlier, while CoinDesk reported that bitcoin later bounced back to $82,000.
Updates
- Update, : Added the Oct. 14 CPI coverage, the Oct. 15 producer price data and liquidation reports from CoinDesk, Decrypt, Cointelegraph and The Block.
Key facts
- September CPI hit 3.7%, above forecasts.
- Bitcoin dropped below $82,000 after September core CPI beat forecasts.
- September producer inflation overshot expectations by 100 basis points, the largest monthly gain since March 2022.
- Ether accounted for nearly 60% of the forced closures across the two largest cryptocurrencies.
- Odds of an October Fed hike climbed to 29% from 18% a week earlier.
- Bitcoin bounced back to $82,000 after its first fall below $80,000 in a month.