Bitcoin miners plunge 13% on hot CPI, rate fears — SkimNews
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- Bitcoin miners plunged up to 13% in Wall Street's worst selloff since July, with TeraWulf down 12.64%, Core Scientific 12.44%, Cipher Mining 12.35%, and IREN 12.2%, alongside declines in Riot Platforms, Bitdeer, MARA, and CleanSpark
- The S&P 500 fell 1.1% — its biggest one-day decline since July 29 — while the Nasdaq Composite dropped 1.9% (its largest since July 23) and the Dow Jones Industrial Average slipped 0.1%
- AI infrastructure stocks led decliners, with CoreWeave falling 16%, Nebius 11%, and Oracle 9%, while 21 of 23 stocks in PRISM's AI Data Center and Infrastructure Index declined for an average loss of 7.46%
- September CPI rose 3.7% year-over-year, exceeding economists' 3.6% forecast and well above the Fed's 2% target, with higher gasoline prices driven by the Middle East war cited as the cause
- The implied probability of an October Fed rate hike briefly exceeded 50% on Wednesday before retreating, according to market pricing
- San Francisco Fed President Mary Daly said further rate hikes were likely needed to bring inflation under control but pushed back on urgency to act this month: 'I don't feel urgent that we have to decide with a limited set of information. I think we have the time that we need'
Why it matters: Bitcoin miners and AI infrastructure companies rely heavily on debt to finance data center expansion, so the hotter CPI print and rising rate-hike expectations directly threaten the buildout economics of the sector. With 21 of 23 tracked AI infrastructure stocks declining and an average loss above 7%, the October 27-28 Fed meeting now carries heightened stakes for capital-intensive crypto and AI plays.
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