U.S. inflation for September was higher than expectations, at 8.2% year-on-year. Bitcoin dropped by 4% in 30 minutes following the release.
According to the most recent Consumer Price Index (CPI) data, U.S. inflation in September was hotter than anticipated, increasing by 0.4% from month to month.
Along with this August-to-September increase, the year-over-year reading was 8.2%. Both of these numbers exceeded Bloomberg’s projections of 8.1% annually and 0.2% monthly.
Prior to the release of this data on Thursday, all cryptocurrencies were down, and the prices fell after it.
According to QCP Capital, bitcoin (BTC) typically declines by an average of 4% in the 30 minutes that follow an inflation report that is higher than expected. This includes a 5% decline in the previous month and up to 7% in April of this year.
Future Fed, ECB, and Bank of England rate increases are anticipated to be 75 basis points each, according to Marko Kolanovic of JPMorgan. The inflation report released today will not change predictions of an interest rate increase.