Bitcoin Drops as Hot CPI Doubles Fed Hike Odds — SkimNews
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- U.S. CPI rose 3.7% year-over-year in September versus the 3.6% consensus, with gasoline spiking 9.1% in a single month and accounting for more than half the headline gain.
- Fed October hike odds roughly doubled from 22% to 44-49% on the print, per CME FedWatch, with the Fed already at a 3.75%-4.00% range after its September hike.
- Bitcoin fell 1.5% to $82,142, dragging Ethereum down 2.8% to $2,440, Solana 1.9%, and XRP 1.3%, while total crypto market cap shed 0.7% to $2.8 trillion.
- Treasury yields spiked, with the 2-year jumping roughly 10 basis points to about 4.9% and the 10-year hitting roughly 5.3%, near 24-year highs.
- Crypto liquidations topped $281 million over 24 hours, driven mostly by Bitcoin longs as forced selling hit leveraged bullish bets.
- Bitcoin's technical picture keeps price inside the $81,847-$82,305 Fibonacci golden zone, with $81,603 as the next critical support ahead of the PPI report Thursday and the Fed's October 28 decision.
Why it matters: With Fed October hike odds jumping from 22% to 44-49% in a single session, Bitcoin traders who piled into longs got a brutal reintroduction, losing $281 million in 24 hours of forced liquidations. A hotter Thursday PPI could break the $81,603 support and drag BTC toward $80,284 before the Fed's October 28 decision.
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