Bitcoin fell below $82,000 on Wednesday after US consumer inflation came in hotter than anticipated. BTC dropped to $81,926 on Bitstamp following the release of September's Consumer Price Index data, which showed inflation at 3.7% year-on-year versus market expectations of 3.6%.
Fuel prices accounted for a significant portion of the inflation increase, with gasoline prices rising 9.1% in September and accounting for over half of the monthly increase. The energy index climbed 5.2% for the month, following a 2.1% increase in August. Core inflation, excluding energy and food, also came in higher than expected at 2.6% year-on-year.
The inflation data triggered broader market movements. Gold fell to $4,079 per ounce, while US 10-year bond yields spiked to 5.329%, approaching 24-year highs. Stock-market futures also declined on the news.
Federal Reserve rate expectations shifted following the CPI release. According to CME Group's FedWatch Tool, markets adjusted odds for the Fed's October 27-28 meeting, with a 53.7% probability now favoring a 25-basis-point rate hike compared to 22.1% the prior day. December rate-hike odds stood at 50%.
Bitcoin continued to trade in a range between $82,500 and $83,400 as markets assessed support levels. The Producer Price Index for September, another key inflation measure, is scheduled for release on Friday.
