Bitcoin Falls Toward $81,000 as Hot CPI Print Boosts Rate Hike Bets
By Joseph Wilkins
Bitcoin fell to just above $81,000 on Thursday after a hotter-than-expected U.S. inflation print drove up market expectations for a Federal Reserve rate hike later this month.
The flagship cryptocurrency was 0.7% lower at $81,181, having tumbled to as low as $80,580 earlier in the session. Bitcoin started its decline on Wednesday, after the latest CPI release showed prices for consumer goods were 3.7% higher in September than the same time last year, above economists' expectations.
The CME Group's FedWatch assesses a 73% chance that interest rates stay unchanged after the Federal Reserve's Oct. 28 meeting, with a 27% chance of a quarter-point boost. Immediately after the CPI report, odds put out by some analysts were seen swinging to around 50/50 for a potential increase.
"For cryptocurrencies, higher rates can reduce investors' willingness to take risks and increase the relative appeal of yield-bearing instruments," said Simon-Peter Massabni, head of retail sales at multi-asset broker XS.com.
Investor sentiment in equity markets also took a hit. The Nasdaq and S&P 500 logged their biggest one-day declines since July on Wednesday as inflation worries and AI sector jitters sent markets lower.
South Korea's Kospi--which is heavily skewed toward chip stocks--tumbled 7.5% on Thursday as Samsung Electronics and SK Hynix plunged 9.5% and 11%, respectively.
Write to Joseph Wilkins at joseph.wilkins@wsj.com
(END) Dow Jones Newswires
October 15, 2026 04:59 ET (08:59 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
5 Stocks to Sell for Tax-Loss Harvesting
33 Undervalued Stocks to Buy Before the Market Shifts Again
The Smartest Moves for Bond Investors Today, and What to Do When You Have Too Many Investments
Ask the Analyst: What Is the Best Source for Low-Risk Tax-Free Income?
United States