Bitcoin drops below $81,000 as higher U.S. inflation shakes rate expectations
CIE News ·
Based on reporting by CoinDesk; not yet independently confirmed.
Bitcoin fell under $81,000 following U.S. inflation data that showed consumer prices rose 3.7% annually in September. Major altcoins also dropped 3.5% to 4% as rate hike expectations briefly spiked.
Bitcoin (BTC) fell below $81,000 early on October 15, declining nearly 1% since midnight UTC and more than 2% over a 24-hour period, CoinDesk reported. The downturn followed U.S. inflation data released on October 14, which showed consumer prices climbed 3.7% in the 12 months through September, exceeding analyst forecasts. Broader crypto markets also retreated, with Ether (ETH), XRP (XRP), and Solana (SOL) sliding between 3.5% and 4%, while PYTH gained over 7%.
The inflation print renewed concerns that the Federal Reserve might raise benchmark interest rates in October. CME FedWatch data indicated that the probability of an October rate increase briefly jumped from around 22% to almost 47% before falling back to 26%, while prediction platform Polymarket showed odds briefly touching 50% before settling near 30%.
Institutional flows also showed signs of cooling, with U.S. spot Bitcoin ETFs recording $150.5 million in net outflows on October 14, according to Vikram Subburaj, CEO of Giottus. Market-making firm STS Digital noted that ongoing macro uncertainty has dampened risk appetite across asset classes.
Key facts
- BTC below $81,000
- September CPI rose 3.7%
- ETH, XRP, SOL down 3.5% to 4%
- Spot BTC ETFs lost $150.5M