Bitcoin Falls Sharply After Above-Forecast U.S. Inflation Data — Update

By Joseph Wilkins and Renae Dyer

Bitcoin fell to an 11-week low after U.S. inflation data for October exceeded expectations, supporting the prospect of further interest-rate rises by the Federal Reserve.

Consumer prices rose 0.4% in October compared with the prior month following a 0.6% increase in September, above the 0.3% forecast by economists in a Wall Street Journal survey. Core inflation had a surprise increase to 0.3%, in line with last month's rise, after expectations for a fall to 0.2%.

Bitcoin dropped to $73,550, its lowest level since August, LSEG data showed. Ether declined to a 12-week low of $2,053.

Ahead of the data, Fed governor Christopher Waller said he would likely support a 25-basis-point interest-rate hike in December. However, a 50-basis-point interest-rate hike should be considered if core inflation comes in at 0.3% or higher, he said at a conference in London.

The odds of a December rate hike being implemented remain almost certain but the critical question is by how much, Moneyfarm chief investment officer Richard Flax said in a note.

"With core inflation meeting the threshold that Fed governor Waller laid out for a larger 50bps rate hike, it will be interesting to see how the Fed takes this forward," he said.

The prospect of further Fed tightening is negative for risk appetite, weighing on cryptocurrencies.

The digital-assets sector has been hit with a series of setbacks in recent weeks after a record $6.3 billion hack of crypto exchange Binance, as well as the Democratic election sweep that some investors fear could translate into greater scrutiny of the crypto industry.

The cryptocurrency industry needs rules that survive elections and it must reduce its reliance on one political party, according to Utkarsh Ahuja, founder of crypto hedge fund Moon Pursuit Capital. A potential Democratic investigation into President Trump's crypto interests and an inability to pass the Clarity Act highlight the limits of relying on one political coalition, he said. "For institutional investors, durable regulation can be more valuable than favorable treatment that changes with the next administration," Ahuja added.

-Write to Joseph Wilkins at joseph.wilkins@wsj.com and Renae Dyer at renae.dyer@wsj.com

(END) Dow Jones Newswires

November 10, 2026 10:20 ET (15:20 GMT)