Bitcoin Dips Below $81,000 Amid Inflation Concerns and Rate Hike Speculations
- Bitcoin fell to an intraday low of $80,444, trading at $81,002, down by 2.7% in the past day.
- U.S. consumer prices increased by 3.7% year-over-year in September, with a monthly rise of 0.6%.
- Traders’ odds for a Federal Reserve rate hike in October rose to approximately 43%, up from previous estimates of around 24%.
- Tim Sun from HashKey attributes Bitcoin’s stalled rally to slowing demand from spot ETFs and corporate Bitcoin treasuries.
- Algoz’s Stephen Wundke predicts Bitcoin will trade between $76,000 and $83,000 for the rest of October unless a significant catalyst arises.
The recent dip in Bitcoin prices follows hotter-than-expected U.S. inflation data that has increased speculation about potential Federal Reserve interest rate hikes this month.
With inflation running above the Fed’s target for an extended period and rising borrowing costs affecting demand from key buyers like ETFs and corporate treasuries, Bitcoin remains under pressure within its current trading range of $76,000 to $83,000.
