CryptoSlate
Bitcoin fell below $83,000 after hotter-than-expected US inflation revived expectations of another Federal Reserve rate hike. More than $100 million in crypto positions were liquidated within an hour of the report, pushing 24-hour liquidations above $220 million. Bitcoin now faces immediate support at $81,300.
Why it matters
September consumer prices rose 3.7% year over year, above the 3.6% forecast, while core inflation increased 0.3% for the month against a 0.2% consensus. Core inflation accelerated to 2.6% annually from 2.4%, extending the period above the Fed's 2% target to 67 consecutive months. The 10-year Treasury yield rose roughly 7 to 9 basis points during the session.
Kalshi's implied probability of a 25-basis-point October rate hike climbed to 55% from 21%. Higher yields can make interest-bearing assets more attractive, while a stronger dollar can tighten financial conditions and weigh on speculative demand. The Fed's next policy meeting is scheduled for Oct. 27–28, with September PCE inflation data due Oct. 29.
Market impact
Bitcoin's macro headwind arrives as demand indicators show some improvement. CryptoQuant estimated that total Bitcoin demand increased by about 69,000 BTC after two largely negative months, alongside a recovery in spot demand and continued growth in futures demand. That buying could help absorb selling, but the recent liquidations suggest leveraged positions remain exposed to inflation surprises and rate repricing.
Analyst Lewis Huang identified $81,300 as immediate support. A sustained break below that level could expose Bitcoin to further losses, particularly if Treasury yields and the dollar continue rising. Whether spot buyers can withstand another wave of forced selling is the near-term test.
Frequently asked questions
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How much crypto was liquidated after the inflation report?
More than $100 million in leveraged positions were liquidated within an hour. Total crypto liquidations exceeded $220 million over 24 hours.
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Why did hotter inflation pressure Bitcoin?
Hotter inflation revived expectations of Fed rate hikes and pushed Treasury yields higher. Higher yields and a stronger dollar can tighten financial conditions and weigh on speculative assets.
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What inflation figures surprised markets?
September consumer prices rose 3.7% year over year, above the 3.6% forecast. Core prices increased 0.3% for the month, compared with a 0.2% consensus.
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What is the immediate Bitcoin support level mentioned by analysts?
Analyst Lewis Huang identified $81,300 as immediate support. He warned that a sustained decline below that threshold could expose Bitcoin to further losses.
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What could offset the pressure on Bitcoin?
CryptoQuant estimated that total Bitcoin demand rose by about 69,000 BTC after two largely negative months, with spot demand recovering. Continued buying could help absorb selling pressure.
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