CPI exceeds expectations again! U.S. stocks and Bitcoin come under pressure—will the Fed raise rates again in December?
Just as the market began to breathe a sigh of relief, inflation data poured cold water on investors.
The year-over-year change in U.S. CPI for October was not released due to a statistical base-period issue, but the month-over-month increase was 0.4%, above the market's expected 0.3%. Core CPI rose 0.3% month over month, also above expectations of 0.2%. This suggests that inflationary pressures are not easing as quickly as the market had hoped.
After the data was released, the market quickly adjusted its expectations: the likelihood of a Fed rate hike in December increased, Treasury yields rose, the dollar strengthened, and risk assets came under pressure.
U.S. stocks all closed lower on the day, with the Nasdaq, S&P 500, and Dow Jones falling in unison. Bitcoin also briefly dropped to around $73,500, nearing its recent lows once again.
Why does CPI affect BTC?
The logic is straightforward: the more persistent inflation is, the more likely the Fed is to keep interest rates high or even raise them further. As borrowing costs rise, investors may become less inclined to take on risk, which naturally affects Bitcoin as well.
But that doesn't mean BTC will necessarily keep falling. What happens next will also depend on upcoming inflation data, comments from Fed officials, and how the market reprices the interest-rate outlook.
What really matters now is not just whether Bitcoin can hold key price levels, but whether expectations for Fed policy will continue to turn more hawkish.
Do you think this latest bout of inflationary pressure will push Bitcoin into a further correction, or has the market already priced in the expected rate hikes?
#BTC #CPI #cpi高于预期，美股与btc再度承压
Just as the market began to breathe a sigh of relief, inflation data poured cold water on investors.
The year-over-year change in U.S. CPI for October was not released due to a statistical base-period issue, but the month-over-month increase was 0.4%, above the market's expected 0.3%. Core CPI rose 0.3% month over month, also above expectations of 0.2%. This suggests that inflationary pressures are not easing as quickly as the market had hoped.
After the data was released, the market quickly adjusted its expectations: the likelihood of a Fed rate hike in December increased, Treasury yields rose, the dollar strengthened, and risk assets came under pressure.
U.S. stocks all closed lower on the day, with the Nasdaq, S&P 500, and Dow Jones falling in unison. Bitcoin also briefly dropped to around $73,500, nearing its recent lows once again.
Why does CPI affect BTC?
The logic is straightforward: the more persistent inflation is, the more likely the Fed is to keep interest rates high or even raise them further. As borrowing costs rise, investors may become less inclined to take on risk, which naturally affects Bitcoin as well.
But that doesn't mean BTC will necessarily keep falling. What happens next will also depend on upcoming inflation data, comments from Fed officials, and how the market reprices the interest-rate outlook.
What really matters now is not just whether Bitcoin can hold key price levels, but whether expectations for Fed policy will continue to turn more hawkish.
Do you think this latest bout of inflationary pressure will push Bitcoin into a further correction, or has the market already priced in the expected rate hikes?
#BTC #CPI #cpi高于预期，美股与btc再度承压