Bitcoin and US stocks initially fall after October inflation tops forecasts, with traders expecting a quarter-point Fed rate hike in December.

Bitcoin (BTC) dipped toward its 11-week lows near $73,500 at Tuesday’s Wall Street open after US inflation came above expectations.

Data from TradingView showed BTC/USD falling to $73,518, nearly matching the low it set on Sunday, its lowest level since Aug. 21.

The October print of the Consumer Price Index (CPI) came in at 0.4% month-on-month, above the anticipated 0.3%. CPI, which lacked a year-on-year component due to the absence of data collection during the 2025 US government shutdown, nonetheless showed a cooling rate of growth versus September, when the monthly increase hit 0.6%.

“The index for shelter rose 0.3 percent in October, accounting for over thirty percent of the monthly all items increase. The food index increased 0.5 percent in October, as the food at home index rose 0.4 percent and the food away from home index increased 0.5 percent,” the official release from the Bureau of Labor Statistics (BLS) stated.

Whereas energy price increases had accounted for a major portion of the September CPI gain, October’s energy index advanced significantly less at 0.7% versus the previous 5.2% move.

Economist Robin Brooks described the CPI result as “discouraging” while noting that the oil-price spike had contributed to the September numbers.

“All the details of this CPI report are discouraging, but October was also the peak of the second big oil price shock this year and that’s obviously going to bleed into core CPI inflation,” he wrote in an analysis.

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