Bitcoin drops below $82,000 as hot inflation raises Fed rate hike fears
Pushes Federal Reserve rate hike odds to 51.3% after hotter CPI data. Triggers crypto sell-off as Bitcoin drops below $82,000 and ETF outflows reach $391 million.
A hotter-than-expected Consumer Price Index report revived fears of a Federal Reserve interest rate hike on October 15, according to reports from KuCoin and CoinGape. The probability of an October rate increase climbed to 51.3% following the inflation data.
The unexpected economic print sparked a broad sell-off across cryptocurrency markets, according to KuCoin. Bitcoin broke below $82,000 on elevated volume to reach $80,915, marking a 2.98% decline. Ethereum dipped 3.1% to $2,360, while total cryptocurrency market capitalization dropped roughly 3% to $2.71 trillion.
Institutional crypto products recorded significant withdrawals alongside the price decline, according to data from Yahoo Finance and The Block. Combined spot Bitcoin and Ethereum exchange-traded funds saw $391 million in net outflows on October 14. The market Fear and Greed index moved to a neutral reading of 53, down from 62 on the previous day.
Equity markets also faced heavy selling pressure in response to the inflation release, according to Yahoo Finance. The NASDAQ Composite dropped 1.88% to 26,692, while the S&P 500 fell 1.11% to 7,718. The Philadelphia Semiconductor Index slid more than 4%, marking its sixth consecutive daily loss.
Risk-off sentiment was further compounded by a broader rout across Asian equities, according to CoinGape and Yahoo Finance. The widespread declines across crypto and stock markets reflected growing investor caution amid shifting expectations for United States monetary policy.
What do these terms mean?
Consumer Price Index (CPI): A key economic indicator that tracks changes in the prices paid by consumers for a basket of goods and services to measure inflation.
Federal Reserve: The central bank of the United States, which manages national monetary policy, interest rates, and financial system stability.
Market Capitalization: The total value of all circulating units of a cryptocurrency or all shares of a publicly traded company.
Exchange-Traded Fund (ETF): An investment fund traded on public stock exchanges that holds assets such as stocks, commodities, or cryptocurrencies.
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