Bitcoin under threat as December rate hike becomes almost certain
As the CPI exceeds analysts’ forecasts, the Fed (Federal Reserve) is under pressure and could raise rates in December. This direct macroeconomic threat is putting bitcoin under extreme strain around the key $74,000 level.
October CPI inflation rose 0.4% month over month (Core CPI rose 0.3%), significantly exceeding market expectations.
Expectations of a Fed rate hike at its December meeting have surged to 97%.
Bitcoin is fluctuating nervously around $74,200, threatening to give up the psychological $74,000 support level if the liquidation wave intensifies.
U.S. inflation surprises the market
The October Consumer Price Index (CPI) report came as a cold shower for Wall Street and the crypto ecosystem. This came just days after Michael Saylor showed 400 years of dominance for bitcoin. With a 0.4% monthly increase versus the 0.3% expected (and Core CPI holding at 0.3%), inflation is showing persistent resilience that frustrates central bankers’ plans.
This persistence rules out the likelihood of a short-term rate cut and strengthens the possibility of a Fed rate hike in December. In fact, Governor Christopher Waller warned that a 25-basis-point hike is now the main scenario for December. Some experts do not rule out the possibility of a more aggressive 50-basis-point tightening if the indicators do not ease.
Impact of inflation and the Fed’s December rate review
This shift in monetary expectations prompted an immediate reallocation of capital toward the dollar and bond yields, at the expense of risk assets.
$BTC
$AME.US
$AUTL.US
#bitcoin
As the CPI exceeds analysts’ forecasts, the Fed (Federal Reserve) is under pressure and could raise rates in December. This direct macroeconomic threat is putting bitcoin under extreme strain around the key $74,000 level.
October CPI inflation rose 0.4% month over month (Core CPI rose 0.3%), significantly exceeding market expectations.
Expectations of a Fed rate hike at its December meeting have surged to 97%.
Bitcoin is fluctuating nervously around $74,200, threatening to give up the psychological $74,000 support level if the liquidation wave intensifies.
U.S. inflation surprises the market
The October Consumer Price Index (CPI) report came as a cold shower for Wall Street and the crypto ecosystem. This came just days after Michael Saylor showed 400 years of dominance for bitcoin. With a 0.4% monthly increase versus the 0.3% expected (and Core CPI holding at 0.3%), inflation is showing persistent resilience that frustrates central bankers’ plans.
This persistence rules out the likelihood of a short-term rate cut and strengthens the possibility of a Fed rate hike in December. In fact, Governor Christopher Waller warned that a 25-basis-point hike is now the main scenario for December. Some experts do not rule out the possibility of a more aggressive 50-basis-point tightening if the indicators do not ease.
Impact of inflation and the Fed’s December rate review
This shift in monetary expectations prompted an immediate reallocation of capital toward the dollar and bond yields, at the expense of risk assets.
$BTC
$AME.US
$AUTL.US
#bitcoin
