U.S. October CPI came out tonight: headline inflation rose 0.4% and core inflation rose 0.3%, both higher than market expectations of 0.3% and 0.2%. As soon as the news broke, bets on a Fed rate hike in December picked up again. Fed Governor Waller had previously said he would lean toward raising rates even if inflation came down. BTC is still hovering around $74,000, and U.S. spot BTC ETFs saw another $200 million in outflows on Monday. BlackRock's IBIT has seen net redemptions for seven consecutive trading days, with total outflows in November now at $1.48 billion.

Interestingly, U.S. stocks rebounded sharply on Monday, with the Nasdaq up 2.7%, but BTC barely followed suit and went nowhere. My feeling is that hotter-than-expected inflation has pushed the door to rate cuts further down the road, and institutional money won't be coming back anytime soon. BTC will probably keep hovering around $74,000. Honestly, as someone who has a mortgage payment to make every month, the last thing I want is to treat news like CPI as a signal to buy the dip, jump in as soon as the data comes out, and then get burned by ETF outflows the next day.

What do you think about this hotter-than-expected CPI reading? Will BTC first break below $73,000, or has it already been priced in?

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This is not investment advice. Make your own decisions.