Bitcoin fell below $81,000 following the release of stronger-than-expected U.S. inflation data, which reignited concerns about a potential Fed rate hike in October. Bets on an October hike briefly surged to nearly 50% after the report but then cooled to 26–30%.
The largest cryptocurrency by market capitalization is trading 1% below its midnight UTC level. In early Asian trading, prices dropped to nearly $80,000, then briefly rebounded to around $81,500, but the recovery stalled around $81,000, according to CoinDesk. Over the past 24 hours, the price has fallen by more than 2%.
Traditional markets also shifted into defensive mode. Nasdaq futures were down 1% at the time of publication, continuing a 2% decline on Wednesday, while South Korea's KOSPI plummeted 8% and triggered circuit breakers.
Data released on Wednesday showed consumer prices rose 3.7% for the 12 months ending in September, compared to 3.4% in August and above economists' expectations. Core CPI, excluding food and energy, rose 2.6%, accelerating from 2.4% the previous month.
Markets quickly reassessed the likelihood of a Fed move. On Polymarket, the probability of an October hike briefly jumped to nearly 50% following the CPI release, then fell to about 30%. CME FedWatch showed a similar pattern: initially rising from about 22% to nearly 47%, then retreating to 26% at the time of publication.
"Stronger U.S. inflation data has reignited concerns that rates will remain high for longer," said Vikram Subburaj, CEO of Indian exchange Giottus. "Inflation rose to 3.7% year-over-year in September, increasing uncertainty about the Fed's next move."
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
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