Bitcoin fell below $81,000 early Thursday as hotter-than-expected U.S. inflation data reignited concerns about a potential Federal Reserve rate increase this month. The largest cryptocurrency by market value was trading just below $81,000, down nearly 1% since midnight UTC and more than 2% over the previous 24 hours.
U.S. consumer prices rose 3.7% in the 12 months through September, up from 3.4% in August and exceeding economists' expectations. Core CPI, which excludes food and energy, climbed to 2.6%, accelerating from 2.4% the previous month.
The inflation data prompted markets to reprice expectations for a Fed move. Prediction markets initially spiked odds of an October rate hike to nearly 50%, but those probabilities cooled to around 26% to 30% as traders reassessed. The CME FedWatch tool showed a similar pattern, with odds jumping to nearly 47% before retreating to 26%.
Other major cryptocurrencies declined alongside bitcoin. Ether, XRP, and Solana each fell between 3.5% and 4%, while PYTH remained the only top-100 cryptocurrency trading significantly higher, up more than 7%.
Traditional markets also faced broad pressure. Nasdaq futures dropped 1% at the time of reporting, extending Wednesday's 2% decline, while South Korea's KOSPI index plunged 8% and triggered circuit breakers.
Institutional demand showed signs of weakness. U.S. spot bitcoin ETFs recorded $150.5 million in outflows on October 14, reversing the previous day's $175.7 million inflow.
Market participants attributed the pressure to mounting economic uncertainty. According to one market maker, the unclear path forward for the Fed was dampening liquidity and risk appetite across asset classes, with cryptocurrencies increasingly sensitive to macroeconomic factors.
