After U.S. consumer inflation exceeded expectations, Bitcoin fell below $82,000, while bond yields moved towards a 24-year high.
After the opening of Wall Street on Wednesday, U.S. consumer inflation data exceeded expectations, and Bitcoin ( BTC ) fell below $82,000.
Key points:
- In September, the inflation rate in the United States was 3.7%, higher than the expected 3.6%. Bitcoin once fell to $81,926 on Bitstamp.
- After the announcement of the news, U.S. Treasury yields soared, and gold prices dropped to $4,079 per ounce.
U.S. CPI exceeds expectations, Bitcoin falls below $82,000
TradingView data shows that after the release of the consumer price index ( CPI ) in September, cryptocurrencies, gold, and stock index futures all fell.
The U.S. Bureau of Labor Statistics ( BLS ) confirmed that in September, CPI rose by 3.7% year-on-year, which is 0.1 percentage points higher than the general market expectations. The increase in fuel prices caused by the Middle East conflict and the oil supply crisis was particularly noticeable.
An official statement said, "In September, the gasoline index rose by 9.1%, accounting for more than half of the overall increase for that month. The energy index also rose by 5.2% that month, following a 2.1% increase in August."
However, inflationary pressures are not limited to the energy sector. Excluding energy and food, the core CPI rose by 2.6% year-on-year, which is also 0.1 percentage points higher than expected.
Carson Group Chief Macroeconomic Strategist Sonu Varghese stated in his comments that it was expected for inflation data to remain high.
He said about CNBC: "The only surprise is that investors are still surprised by the widespread inflation. Moreover, we haven't yet seen the full impact of rising diesel prices and the AI craze."
Regarding the future of Federal Reserve policy, economic analyst Theresa Sheehan stated: "Considering the weak non-farm data in the September employment report, the Federal Open Market Committee (FOMC) may choose to hold its course at the meeting scheduled for October 27-28, but there is a clear inclination to raise interest rates in December."
As previously reported by Cointelegraph, the next key U.S. inflation data – the Producer Price Index for September ( PPI ) – will be released on Friday.
Analysis: High CPI is "the last thing the global bond market needs to see"
After the release of the CPI data, gold prices fell to a low of $4,079 per ounce, while the yield on U.S. Treasury bonds rose significantly.
The yield on 10-year U.S. Treasury bonds, which are highly sensitive to changes in energy prices, has risen to 5.329%, just about 3 basis points away from a 24-year high.
Economist Robin Brooks wrote in a blog post: "This is the last thing the global bond market needs to see. Before the release of these data, the global bond sell-off seemed to be easing, but now the bond market has flared up again."
The price trend of Bitcoin continues to fluctuate around the key range of $82,500 to $83,400, and market analysts are still waiting to determine whether this range can become a support level.
