Bitcoin Gives up $82,000 as Hot US CPI Sends Bonds Toward New Highs

Bitcoin fell to $81,500 after September's CPI report showed a 0.6% monthly increase and 3.7% annual rise, per the Bureau of Labor Statistics. The dollar strengthened, and Fed rate hike expectations grew, impacting crypto markets. Analyst sentiment shifted positively, but inflation and energy costs remain challenges, according to Bitwise Asset Management and Wincent.

Bitcoin (BTC) dropped to $82,000 due to higher-than-expected U.S. inflation data. Analysts warned of potential further declines due to macroeconomic factors. Institutional demand showed recovery with $175.6M in ETF inflows. Traders noted low volatility may precede a major price move, with $83,000 identified as a key technical level. Increased activity among long-term holders was observed, but not necessarily indicative of selling.

US consumer prices rose 3.7% year-on-year in September, exceeding expectations. The core rate, excluding energy and food, increased 2.6%, also above forecasts. Bitcoin traded around $82,880 post-release, showing minimal movement. The Fed's rate decision on October 28 will consider these inflation figures, with the core rate being more influential for monetary policy.

Bitcoin, Ethereum, XRP, and Dogecoin each fell over 2% in 24 hours, with Bitcoin near $81,500. Hotter-than-expected CPI data fueled expectations of further Fed rate hikes. Coinglass reported $331.89 million in liquidations, while SoSoValue noted $175.6 million in Bitcoin ETF inflows and $24.84 million in Ethereum ETF inflows. Analysts discussed potential price movements and support levels for Bitcoin.

Bitcoin fell below $82,000 after U.S. inflation data showed a higher-than-expected annual increase to 3.7%, raising concerns about potential Federal Reserve rate hikes. Ether and XRP also declined, with crypto-linked stocks like Robinhood Markets (HOOD) down 3.27%.

Bitcoin price dropped below $82,000 after the US CPI inflation data came in higher than expected at 3.7% year-on-year, driven by rising oil prices. The data increased expectations of a 25-basis-point interest rate hike by the Federal Reserve in October and December, according to CME Group's FedWatch Tool. Gold and US bond yields also reacted to the inflation data.