On Tuesday morning, Bitcoin’s price hovered around $73,500, reflecting a decline of approximately 1% over the previous day and standing about $32,000 lower than its value one year prior. This movement follows a stronger-than-anticipated inflation report, which has reignited concerns regarding a potential increase in Federal Reserve interest rates, as reported by data. The U.S. consumer price index experienced an increase of 0.4% in October, surpassing the 0.3% anticipated by economists. Core CPI, which excludes food and energy, increased by 0.3%, surpassing expectations of 0.2%. Bitcoin price had been maintaining a position close to $74,300 in the moments leading up to the 8:30 a.m. announcement. It declined to approximately $73,400 immediately following the print, momentarily dipping below Monday’s overnight low of $73,477, before stabilising in the high-$73,000s.
Food prices increased by 0.5% month-over-month, while energy prices saw a rise of 0.7%, and petrol prices experienced a gain of 1.0%. Housing costs rose by 0.3%. The report will not include an annual inflation rate. The government shutdown in October 2025 hindered the Bureau of Labour Statistics from gathering a complete set of prices, resulting in the absence of a comparable figure. Bank of America projected prior to the announcement that the annual rates were approximately 3.8% for the headline figure and 2.7% for the core measure. Bond traders took the initiative. Two- to five-year Treasury yields increased by a minimum of 10 basis points following the print, while traders heightened their expectations for a half-point hike during the Fed’s meeting on Dec. 9. That was the scenario Fed Governor Christopher Waller laid out hours earlier. He said he is “leaning toward” a December increase and would back “more robust action” if inflation ran hotter than expected. “In that case, I believe a 50 basis point hike in the policy rate should be considered at the December meeting,” Waller said. “Hiking only 25 basis points would put our credibility at risk, a risk I am not eager to take.”
Prior to the data release, markets had predominantly factored in a quarter-point adjustment. Higher rates increase the expense associated with maintaining an asset that generates no yield, and this calculation has constrained the bitcoin price following Friday’s robust jobs report. Bitcoin had already exhibited weakness overnight. It experienced a decline of approximately 1.4% from midnight UTC prior to the data release, despite a rally in Asian markets. South Korea’s Kospi experienced a notable increase of 4.39%, while Japan’s Nikkei 225 saw a rise of 2.87%. Concurrently, oil prices continued their downward trend following President Donald Trump’s assertion that new strikes on Iran are “highly unlikely.” Stock futures exhibited a mixed performance ahead of the impending release. Dow futures increased by 156 points, representing a 0.3% rise, whereas Nasdaq-100 futures experienced a decline of 0.4% following Monday’s rally, which marked the S&P 500’s most significant performance since April 8. Commodities experienced a decline as well. West Texas Intermediate crude traded near $84 a barrel, marking its lowest level since late August, while gold experienced a decline of just over 1%, falling below $4,100 an ounce.
Fund demand has failed to mitigate the decline. U.S. spot bitcoin ETFs experienced a decline of $201 million on Monday, primarily driven by a $213.2 million outflow from BlackRock’s iShares Bitcoin Trust, marking its seventh consecutive session of redemptions. The streak persists as BlackRock reports that demand for converting coins into IBIT in kind has reached an all-time high. The bitcoin price has declined from its peak of over $87,000 in early October, influenced by concerns related to AI that have impacted Wall Street, alongside a retreat from ETF buyers. Ether declined approximately 1.4% to around $2,100 overnight, following a loss of $184.6 million in U.S. spot ether ETFs on Monday. Analysts flagged 73,000 as the queue to watch. A daily close below it could open the way to $70,000, while reclaiming $80,000 would point to stronger demand. Producer price data will be released on Friday, with the minutes from the Fed’s October meeting scheduled for November 18. Both will assist in determining whether traders maintain their positions on a half-point hike or reduce them.
