Key Insights Bitcoin price fell below $83,000 and crypto market retreat after September US CPI inflation readings exceeded expectations. US inflation remained above the Federal Reserve’s 2% t
Bitcoin fell below $83,000 as September US consumer price index (CPI) inflation exceeded expectations and fueled speculation of another crypto market selloff.
The headline US CPI rose 3.7% year over year, while several major digital assets posted weekly losses. Specifically, Bitcoin price plunged 1.5% within an hour of the inflation data release.
The latest reading also extended the period of inflation above the Federal Reserve’s 2% target to 66 consecutive months.
The inflation report showed faster annual price growth than markets had expected. September headline US CPI inflation increased 3.7% year-over-year (YoY), compared with expectations of 3.6%. It marked the highest annual rate since May.
US CPI Inflation Data | Source: Bureau of Labor Statistics
Meanwhile, monthly unadjusted CPI rose 0.6%, its largest increase since April. Core CPI, which excludes food and energy, climbed 2.6% year over year. That topped expectations of 2.5% and marked the highest rate since June.
Seasonally adjusted core US CPI increased by 0.3% in September, exceeding the 0.2% forecast. As a result, inflation remained above the Federal Reserve’s 2% target for the 66th consecutive month, which has also caused a dip in Bitcoin price.
Bespoke Investment Group said this was only the third period in the past century when U.S. inflation stayed above 2% for at least five years. The persistent readings have complicated the Federal Reserve’s path toward lower interest rates.
Market strategist Shay Boloor said the latest inflation report appeared more closely tied to energy costs than to broad price increases.
US CPI Inflation Commentary | Source: X
However, Boloor noted that higher fuel costs could spread into airfares and shipping. With hiring already slowing, Boloor said those pressures could make the Fed’s October decision more difficult.
Following the US CPI inflation data release, Bitcoin price stood at $82,351.70, down 0.7% over 24 hours and 1.2% over seven days. Bitcoin price also fell 1.5% in the past hour, showing renewed short-term selling pressure.
Bitcoin Price Slips After US CPI Data | Source: CoinGecko
The broader crypto market selloff included losses across several large-cap assets. Ethereum traded at $2,459.30, down 0.9% over 24 hours and 3.9% over seven days. Its hourly decline reached 2.0%, while its daily trading volume totaled $9.85 billion.
XRP traded at $1.35 and remained nearly unchanged over 24 hours. However, it was down 6.1% over the week. BNB also slipped, trading at $734.89 after a 4.0% seven-day decline.
Solana recorded the steepest weekly loss among the top eight cryptocurrencies listed in the provided market data. SOL fell 10.1% over seven days to $104.62. It also declined 2.6% in the past hour and 0.6% over 24 hours.
The recent Bitcoin price movements followed the hotter-than-expected US CPI report, as risk assets sold off before some positions returned to the market. Bitcoin commentator Daan Crypto Trades described the session as volatile and noted that positions were building again, including many short positions.
Daan Crypto Trades said those positions did not guarantee a short squeeze. However, the trader pointed to increased volatility as a likely feature of the day. The Bitcoin price level to watch, according to the trader, was $83,000.
Daan Crypto Trades said a move back above $83,000 for Bitcoin price would make a potential squeeze more notable because that level matched the average entry price for the accumulating positions.
The post Bitcoin Price Loses $83K as U.S. CPI Inflation Data Fuels Fresh Crypto Market Selloff appeared first on The Coin Republic.
