Bitcoin fell below $82,000 on Wednesday after US inflation data for September came in higher than expected, increasing pressure on cryptocurrency and other financial markets. Bitcoin dropped to $81,926 on Bitstamp following the release, while investors reacted to rising energy costs and changing expectations for Federal Reserve interest-rate policy.
US consumer price index (CPI) inflation rose to 3.7% year-on-year in September, exceeding market expectations of 3.6%. Gasoline prices increased by 9.1% compared with a year earlier, accounting for more than half of the monthly increase in overall inflation. Core CPI, which excludes food and energy, also reached 2.6%, slightly above expectations.
The inflation report triggered a broader market reaction, with US bond yields climbing and gold falling to around $4,079 per ounce. The US 10-year Treasury yield reached 5.329%, approaching levels not seen in 24 years. Higher inflation could influence the Federal Reserve’s decisions on interest rates, with market expectations shifting toward a possible rate hike at its upcoming meeting.
Bitcoin continued trading around the $82,500 to $83,400 range, an area analysts were watching for signs of support. Investors are also awaiting the release of September’s US Producer Price Index (PPI), scheduled for Friday, which could provide further insight into inflation trends and their potential impact on cryptocurrency markets.