Bitcoin fell below $82,000 Wednesday after September U.S. inflation came in hotter than markets expected, adding pressure to risk assets and forcing traders to reassess the Federal Reserve’s next move.

The U.S. Bureau of Labor Statistics said the Consumer Price Index rose 0.6% in September and 3.7% from a year earlier. Gasoline jumped 9.1% for the month and accounted for more than half of the overall increase. Core CPI rose 0.3% monthly and 2.6% annually.

Bitcoin traded around $81,900 during the afternoon after moving above $84,000 earlier in the session. Reuters reported that the dollar strengthened, Treasury yields rose and stocks fell after the report, while market-implied odds of an October Fed rate increase climbed sharply.

Bitwise CIO Matt Hougan said on X that he initially expected crypto to fall more sharply after seeing the inflation data, making the market’s comparatively limited reaction notable.

Hougan’s reaction highlights the tension between hotter inflation and Bitcoin’s relatively contained initial decline.

The connection runs through interest rates: higher expected rates can strengthen the dollar and raise yields, making speculative assets less attractive at the margin. BitcoinVersus.Tech previously tracked core inflation’s earlier decline and, more recently, the large swings in Bitcoin ETF flows.

CNBC Crypto World explains how inflation readings can move Bitcoin through changing expectations for Federal Reserve policy.

BitcoinVersus.Tech Editor’s Note:
We volunteer daily to ensure the credibility of the information on this platform is Verifiably True. If you would like to support to help further secure the integrity of our research initiatives, please donate using the QR code provided

For best QR-code scanning results, please scan this donation code from a desktop or larger screen. Mobile screens may prevent camera recognition.