Bitcoin fell 1.4% to around $74,200 ahead of the U.S. October inflation report, while markets priced in a 25-basis-point rate hike at the Fed’s December meeting.
According to data reported by CoinDesk, Bitcoin began its decline at 03:00 Türkiye time on Tuesday. The CoinDesk 20 Index, which tracks major cryptocurrencies, also fell 1.2% over the same period.
What does the market expect from the Fed?
According to CME FedWatch data, investors are pricing in a 25-basis-point hike at the December 9 meeting. If the hike goes ahead, the Fed’s target interest rate range will rise to 4.00–4.25%.
Fed Governor Christopher Waller said he supported a rate hike even if inflation slowed in October. According to Waller, a higher-than-expected reading could put a 50-basis-point hike on the table.
What are expectations for U.S. inflation?
Consumer prices are expected to rise 0.3% month over month in October, while the core index, which excludes food and energy, is expected to rise 0.2%. Because price data could not be collected in October last year due to the federal government shutdown, no year-over-year comparison will be available for this month’s report. In September, annual headline inflation was 3.7% and core inflation was 2.6%.
Not investment advice.