Bitcoin falls as US inflation beats forecasts
Bitcoin dropped 1.2% immediately after the US reported October inflation 0.1 percentage points higher than economists expected.
Bitcoin fell sharply when the Bureau of Labor Statistics released October inflation data that surprised higher than forecast. The main inflation measure rose 0.4% against expectations of 0.3%.
Core inflation, which excludes food and energy, climbed 0.3% instead of the forecast 0.2%. Bitcoin dipped from a high of $74,599 to $73,400 within minutes on the Coinbase exchange before steadying in the high-$73,000s.
Trading volume spiked to 483 Bitcoin in the five minutes after the news, compared with just 36 Bitcoin in the five minutes before. Shelter costs drove much of October's inflation gain, rising 0.3%, while used car prices fell 1.2%.
- $74,599 to $73,400
- Bitcoin price drop
- 483 BTC vs 36 BTC
- Trading volume spike
- 8:30 a.m. ET Tuesday
- Report time
- 0.1 percentage points
- CPI beat vs forecast
Why it mattersBitcoin and other assets often swing sharply on inflation data because interest rate expectations shift, affecting investment returns and market appetite for risk.
AustraliaAustralian investors holding Bitcoin or crypto holdings saw immediate price pressure; Australian inflation watchers note that US inflation trends often influence Reserve Bank thinking on Australian rates.
✓ Claims checked against the source. checked 6 h ago
