Bitcoin and global stocks are under pressure as Wednesday’s U.S. inflation data revived concerns that the Federal Reserve could raise interest rates this month.
The largest cryptocurrency by market value is trading 1% lower since midnight UTC. Prices dipped close to $80,000 in early Asian trading before briefly rebounding to about $81,500, but that recovery has since stalled near $81,000, CoinDesk data show. Prices are down more than 2% in the past 24 hours.
Tokens such as ether , XRP (XRP), solana (SOL) are down 3.5% to 4%. PYTH is the only top-100 cryptocurrency still up more than 7%.
Traditional markets have also turned risk-averse. Nasdaq futures were down 1% at press time, extending Wednesday’s 2% decline, while South Korea’s KOSPI plunged 8% and triggered circuit breakers.
Data released Wednesday showed consumer prices rose 3.7% in the 12 months through September, up from 3.4% in August and above economists’ expectations. Core CPI, which excludes food and energy, climbed 2.6%, accelerating from 2.4% the previous month.
Markets have quickly repriced the odds of a Fed move. On prediction platform Polymarket, the probability of an October rate hike briefly spiked to nearly 50% after the CPI release before easing to about 30%. CME’s FedWatch tool showed a similar pattern: odds initially jumped to almost 47% from roughly 22%, before retreating to 26% as of writing.
S. inflation data has renewed concerns that interest rates will stay higher for longer,” said Vikram Subburaj, CEO of India-based exchange Giottus. 7% annually, increasing uncertainty over the Federal Reserve’s next move.
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