Hot September CPI Data Triggers Sharp Bitcoin Sell-Off

September CPI — Bitcoin fell sharply after U.S. inflation data for September came in hotter than expected, raising fears of renewed Federal Reserve hawkishness.

The Consumer Price Index rose 3.7% year-over-year, exceeding both the prior month’s 3.4% rate and economist forecasts of 3.6%. The core CPI reading, which excludes volatile food and energy prices, also accelerated to 2.6% annually, above estimates.

The data immediately pressured risk assets, with bitcoin dropping $1,000 to trade near $82,800. Bond yields surged in response, with the 10-year U.S. Treasury yield jumping over 9 basis points.

The hotter-than-anticipated figures suggest persistent inflationary pressures, potentially forcing the Fed to reconsider its interest rate path and putting multiple rate hikes back into play for future meetings.