- September US CPI rose 3.7% annually, above the 3.6% forecast, while core CPI reached 2.6%.
- Bitcoin and the S&P 500 dropped sharply alongside gold and silver after the inflation release.
- Ash Crypto estimated that $1.3 trillion was wiped from stocks, metals, and crypto in two hours.
The latest US inflation report has rippled through financial markets, with Bitcoin, equities, and precious metals falling as traders reassess the Federal Reserve’s next move. September’s Consumer Price Index (CPI) came in hotter than expected, renewing concerns that interest rates could remain elevated for longer.
Analyst Ash Crypto reported that stocks, metals, and cryptocurrencies lost about $1.3 trillion within two hours. This post linked the broad selloff to rising inflation, stronger rate-hike expectations, and elevated Treasury yields. However, the figure is an estimate shared by an analyst, not a total independently verified by the supplied charts.
Hot CPI Data Revives Rate-Hike Concerns
The US Bureau of Labor Statistics reported that headline CPI increased 0.6% in September, following a 0.4% rise in August. Annual inflation climbed to 3.7% from 3.4%, exceeding the 3.6% forecast. Core CPI, which excludes food and energy, rose 0.3% monthly and 2.6% annually, compared with 2.4% in August.
Notably, gasoline prices rose 9.1% during September, accounting for more than half of the monthly increase in headline inflation. The energy index advanced 5.2% during the month and stood 20.4% higher year over year. These figures show that energy costs contributed heavily to the acceleration, while the rise in annual core inflation also pointed to continued pressure beyond headline energy movements.
Nevertheless, the release does not guarantee that the Federal Reserve will raise interest rates at its next meeting. It changes the information available to policymakers and traders as they assess whether inflation is easing quickly enough. The report also noted that markets were watching the CPI figures for clues about Bitcoin, Ethereum, XRP, and Cardano. The actual data came in hotter than the headline forecast, shifting attention to the dollar, Treasury yields, and the potential effect on risk appetite.
Bitcoin fell alongside equities and precious metals following the hotter-than-expected inflation report. Crypto analyst Ash Crypto attributed the broader sell-off to a stronger US Dollar Index and rising Treasury yields. A stronger dollar can pressure dollar-priced commodities, while higher yields can make interest-bearing assets more attractive relative to assets that do not generate income.
However, the simultaneous declines do not establish a single cause across all markets. Bitcoin and equities can face selling pressure as investors reduce risk exposure, while gold and silver also respond to changes in yields, currency movements, and demand. The latest price action highlights how inflation concerns can weigh on multiple asset classes as traders reassess the Federal Reserve’s policy outlook.
The next focus is whether upcoming economic data and Fed commentary reinforce expectations of tighter monetary policy. If inflation remains persistent, Bitcoin and other risk assets could face further pressure, while any easing in rate expectations could improve market sentiment.
Related: Bitcoin Falls With Nikkei and KOSPI as Hot US Inflation Revives Fed Rate Hike Fears
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