Bitcoin falls on inflation data at Tuesday’s Wall Street open. Specifically, BTC dipped toward 11-week lows near $73,500.
TradingView data showed BTC/USD hitting $72,815. That nearly matched Sunday’s low, its weakest level since August 21.
Why Bitcoin falls on inflation data today
The October CPI came in at 0.4% month-over-month. That topped the anticipated 0.3%. The reading lacked a year-on-year component. Data collection stopped during the 2025 US government shutdown.
Nevertheless, growth cooled versus September. That month’s monthly increase hit 0.6%.
The BLS release explained the details. “The index for shelter rose 0.3 percent in October,” it stated. Shelter accounted for over 30% of the monthly increase. The food index rose 0.5%, with groceries up 0.4%. Restaurant food rose 0.5%.
Energy played a smaller role this time. October’s energy index advanced 0.7%. In September, it jumped 5.2%.
Markets price in a December rate hike
Economist Robin Brooks called the CPI result “discouraging.” He noted that September’s oil spike inflated those numbers.
“All the details of this CPI report are discouraging,” Brooks wrote. He added that October marked the peak of the year’s second big oil shock. That will “bleed into core CPI inflation.”
Fed governor Christopher Waller spoke earlier Tuesday. He favored a 25-basis-point December hike, even if inflation cooled. CME FedWatch showed markets pricing a 96.3% chance of that outcome.
After the CPI report, odds turned more hawkish. A 25-basis-point hike drew 88.5% odds. A 50-basis-point hike drew 11.5%.
Analysis eyes an “extreme” Nasdaq sell-off
US stocks faced pressure at the open. CPI added to existing headwinds for bulls. Strong labor-market data was one factor. Tighter AI regulation under Democratic control was another.
The Nasdaq Composite opened down 0.6% before recovering. Nvidia fell nearly 4%. A board investigation is examining whether CEO Jensen Huang was targeted by foreign intelligence.
Mosaic Asset Company summarized the backdrop. “Consumer inflation has continued running above target,” it wrote. Meanwhile, the October jobs report “removed any concerns about a labor market slowdown.”
Nevertheless, Mosaic saw signs of “extreme” sell-side pressure on the Nasdaq. That could signal a long-term bottom. The equity put/call ratio jumped above 1.0. That reading is even higher than during the April 2025 trade war selloff.
Key takeaway
Bitcoin falls on inflation data to $73,500. A December rate hike is now 85% priced in. Therefore, traders should watch Fed signals and the $73,500 support zone.