Bitcoin Drops as Hot September CPI Doubles Fed Hike Odds — SkimNews
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- September CPI rose 3.7% year-over-year, above the 3.6% consensus, as gasoline jumped 9.1% in a single month and accounted for more than half of the increase
- Bitcoin fell 1.5% to $82,142, dragging Ethereum down 2.8% to $2,440, Solana 1.9%, and XRP 1.3% as total crypto market cap shed 0.7% to $2.8 trillion
- Odds of an October Fed rate hike roughly doubled from 22% to 44-49% after the report, per CME FedWatch, while the 10-year Treasury yield climbed to about 5.3% near 24-year highs
- Core CPI rose 2.6% annually against a 2.5% forecast — the reading the Fed watches most closely for price pressure spreading into rent, airfares, and services
- More than $281 million in crypto derivatives positions were liquidated over 24 hours, with the majority coming from Bitcoin longs forced out in the final four hours
- Bitcoin is holding the $81,847 to $82,305 Fibonacci golden zone with $81,603 as next support; a daily close below that level would target $80,365 and then $78,003
Why it matters: Leveraged Bitcoin longs took the immediate hit — $281 million in derivatives were force-liquidated in 24 hours after hot CPI flipped the October Fed decision from near-certain hold to a coin flip. With the 10-year at 5.3% competing directly against yieldless Bitcoin and the Fed's October 28 decision looming, the risk-reward for speculative crypto just tightened sharply.
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