Bitcoin (BTC-USD) got knocked further in Thursday morning trading after September's consumer price inflation data once again came in hotter than expected, prompting speculation that the Federal Reserve will keep interest rates higher for longer. Looking at intraday price action, bitcoin (BTC-USD) gapped down ahead of CPI to as low as $18.61K, but then it fell to $18.25K just five minutes after after the report, now down 4.2% to $18.32K at 9:27 a.m. ET. The case for ethereum (ETH-USD) wasn't any different as the world's largest altcoin by market cap slides 7% to $1.21K. The headline CPI print was rose 8.2% Y/Y in September, compared with +8.1% expected and +8.3% in August. The real headache was found in core CPI, which strips out volatile food and energy prices, climbed 6.6% from a year before, the highest level in four decades, and topping the consensus of +6.5% and the prior reading of +6.3%."The Fed has to take this data seriously. A 0.75% increase in now likely in both November & December," said KPMG US Chief Economist Diane Swonk. Indeed, markets have largely priced in that the central bank's Federal Open Market Committee will raise its benchmark interest rate by 75 basis points at its November 1-2 meeting, applying a 93.8% probability for such a move, according to the CME FedWatch tool. That would take the funds rate target range to 3.75%-4.0%. For the December 14 gathering, traders put a 60.3% chance that the target ...
Why Story (IP) Is Up Today?
