Bitcoin fell below $82,000 after US September inflation beat forecasts, driven by gasoline prices. Traders raised their odds of a Federal Reserve rate hike this month, and bond yields moved toward 24-year highs.
Bitcoin fell below $82,000 after Wednesday's Wall Street open, when US consumer inflation beat expectations. The price dropped to $81,926 on Bitstamp as September CPI came in at 3.7% against expectations of 3.6%.
Gasoline lifts the September CPI
Fuel drove the miss. The Bureau of Labor Statistics said the gasoline index rose 9.1% in September, accounting for over half of the monthly all-items increase. Cointelegraph tied the fuel-price rise to the Middle East conflict and oil-supply crisis.
The pressure was not limited to energy. Core CPI, which excludes energy and food, came in at 2.6% year-on-year, 0.1% above expectations. The Consumer Price Index also rose 0.6% in September after climbing 0.4% in August, according to Bitcoin Magazine.
Fed hike odds jump and yields climb
Markets responded by repricing Fed policy. Cointelegraph reported that, per CME Group's FedWatch tool, the odds of a 25-basis-point rate hike on Oct. 28 reached 53.7%, versus 22.1% the day before. Decrypt, citing the same tool, put the odds at roughly 44% to 49%, up from 22% before the report.
Bonds sold off too. The 10-year yield hit 5.329%, around three basis points off new 24-year highs, while gold fell as low as $4,079 per ounce. Economist Robin Brooks wrote that "This is the last thing global bond markets needed."
Bitcoin tests support near $82,000
Decrypt reported that Bitcoin fell 1.5% to $82,142, while Ethereum dropped 2.8% to $2,440. Cointelegraph said BTC price action continued to circle a key area between $82,500 and $83,400.
Bitcoin is holding the $81,847 to $82,305 Fibonacci golden zone, with $81,603 as the next support. A daily close below that level would bring the $80,365 swing low into play, Decrypt said.
Sources: Cointelegraph, Decrypt, Bitcoin Magazine
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