Bitcoin's price declined Wednesday following the release of U.S. inflation data that showed consumer prices increased more than expected in September. The largest cryptocurrency by market capitalization traded near $82,827, down approximately 1% over a 24-hour period, with intraday lows reaching close to $82,331.
The Consumer Price Index rose 0.6% in September after climbing 0.4% in August, according to the Labor Department's Bureau of Labor Statistics. Over the 12-month period through September, the CPI advanced 3.7%, up from 3.4% in August. Gasoline prices contributed significantly to the monthly increase.
Bitcoin has declined more than 1% over the past seven days. The cryptocurrency had rallied strongly in August and September, marking its best quarter in years, though sticky inflation continues to pressure prices in the near term.
Higher inflation has prompted the Federal Reserve to signal it may maintain elevated interest rates for an extended period. The central bank designated reducing inflation as its top priority and hiked rates in September. Higher borrowing costs can restrict liquidity available to digital assets and other risk-sensitive investments, historically pressuring bitcoin's price.
Despite the Fed's hawkish stance on inflation, bitcoin's price rose in September. The central bank is scheduled to announce its interest rate decision on October 28. As of Wednesday, fed funds futures were pricing a 47% probability of a rate increase at the Fed's October meeting, according to CME Group's FedWatch tool.
