U.S. inflation rose 0.4% month over month in October, exceeding expectations, while Bitcoin, which was already falling ahead of the data, dropped to as low as $73,600 after the release.
According to data from the U.S. Bureau of Labor Statistics (BLS), as reported by CoinDesk, consumer prices rose 0.4% in October from the previous month. Although the increase was below September’s 0.6%, it exceeded expectations of 0.3%. The core index, which excludes food and energy, rose 0.3%, matching September’s increase; expectations were for 0.2%.
The BLS did not report an annual inflation rate for October because comparable data for October 2025 was unavailable due to the federal government shutdown.
U.S. Treasury yields rose as Bitcoin fell
Bitcoin, which had fallen to around $74,200 ahead of the data, dropped about another 1% after the release, reaching $73,600. Nasdaq 100 futures fell 1.15%, while S&P 500 futures declined 0.5%.
The yield on the U.S. two-year Treasury rose 14 basis points to 4.69%, while the 10-year Treasury yield climbed 6.5 basis points to 4.93%.
A 50-basis-point move is also being priced in for the Fed
Fed Governor Christopher Waller had said before the data release that a 50-basis-point interest rate hike could be considered if inflation came in above expectations. According to CoinDesk, investors assign a low, but nonzero, probability to a move of that size at the December meeting.
Not investment advice.