Bitcoin Falls as Hot US Inflation Fuels Fears of Bigger Fed Rate Hike

Bitcoin briefly fell to about $73,525 after US inflation exceeded forecasts for the third month running, renewing concern that the Federal Reserve may keep rates high or raise them further. The move added to pressure on a crypto market already weakened by price losses and investor withdrawals.

October’s Consumer Price Index rose 0.4%, against expectations of 0.3%, while core CPI increased 0.3%, above the 0.2% forecast and matching the previous two months. About $178 million in crypto long positions were liquidated within an hour; Bitcoin was down roughly 1% over 24 hours and 4.5% over the week, while US spot Bitcoin ETFs saw $201 million in withdrawals on Monday. Fed Governor Christopher Waller said a 0.3% core reading could warrant considering a 0.5 percentage-point rate rise in December, though markets still saw a smaller increase as much more likely.