Bitcoin Slips Toward 11-Week Low as Hotter Than Expected October Inflation Data Rattles Markets
Bitcoin fell toward an 11-week low on Tuesday at the Wall Street open after a new US inflation report came in higher than economists had expected. The cryptocurrency touched $73,518, nearly matching a low set the previous Sunday and marking its weakest level since August 21, before recovering slightly to trade back above $74,000.
The move followed the release of the October Consumer Price Index (CPI), which showed prices rising 0.4% month over month, above the 0.3% that had been anticipated. The reading did not include a year-over-year figure because data collection was disrupted during the 2025 US government shutdown. Even so, the monthly pace was slower than September's 0.6% increase.
According to the Bureau of Labor Statistics release, shelter costs rose 0.3% in October and accounted for more than thirty percent of the overall monthly increase. The food index climbed 0.5%, with food at home up 0.4% and food away from home up 0.5%. Energy prices, which had driven much of September's increase, grew just 0.7% in October compared with a 5.2% jump the month before.
Economist Robin Brooks called the report "discouraging," while noting that the earlier spike in oil prices during September was still working its way through core inflation figures. He wrote that October marked the peak of the second major oil price shock of the year, which was likely to continue showing up in the data.
Earlier the same day, Federal Reserve governor Christopher Waller said in a speech that he would support a 25-basis-point rate hike in December even if inflation had cooled from September's pace. Before the CPI release, data from CME Group's FedWatch Tool showed markets pricing in a 96.3% chance of that outcome. After the inflation report, those odds shifted, with the probability of a 25-basis-point move easing to 85.3% while the chance of a 50-basis-point move rose to 14.7%.
US stocks also came under pressure at the open. The Nasdaq Composite Index briefly fell 0.6% before recovering, weighed down by the inflation data along with strong labor-market numbers and the prospect of tighter regulation of the AI sector under a Democratic-controlled House and Senate. Nvidia shares dropped nearly 4% amid a board investigation into whether CEO Jensen Huang had been targeted by a foreign intelligence effort.
Trading resource Mosaic Asset Company summarized the backdrop by noting that consumer inflation remained above target while the October jobs report had removed concerns about a labor market slowdown. At the same time, Mosaic pointed to signs of what it called "extreme" sell-side pressure on the Nasdaq, including a spike in the equity put/call ratio above 1.0, a level higher than during the trade war selloff in April 2025. The firm suggested this could indicate the index had formed a long-term bottom.
Who this affects
Anyone holding bitcoin or other cryptocurrencies may notice near-term price swings tied to this inflation report and the shifting outlook for Federal Reserve policy. Investors in broader stock market funds, including those with exposure to technology shares or index funds tracking the Nasdaq, may also see volatility connected to the same data. Households watching mortgage rates, savings account yields or other borrowing costs tied to Fed policy decisions could feel ripple effects depending on what the central bank decides in December.
These are exactly the kinds of interconnected money stories that benefit from calm, careful explanation rather than reaction. A personal finance writer focused on breaking down money, insurance and benefits news for everyday households points out that inflation reports, Fed rate decisions and market swings often get wrapped together in headlines, even though each affects a different part of a household budget.
Markets remain unsettled following Tuesday's data, and both the Federal Reserve's December meeting and ongoing inflation trends could continue to influence asset prices across stocks, bonds and cryptocurrencies. Readers with questions about how any of this might apply to their own savings, investments or financial plans are encouraged to speak with a licensed financial professional who can review their individual circumstances.
Beyond its price swings, investors are increasingly watching how blockchain technology could reshape payments, settlement, and the broader financial system.
Central banks’ gold reserves have been climbing steadily this year, offering a contrast to Bitcoin’s recent volatility as investors weigh inflation risks.
Source: TradingView
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