Bitcoin drops 3% as U.S. inflation rises 0.4% in September

Bitcoin dropped 3% after the U.S. Bureau of Labor Statistics (BLS) reported that the consumer price index (CPI), a key inflation indicator, rose 0.4% in September from August. 

See related article: Fed’s inflation fight batters crypto market as pressure mounts

Fast facts

• The largest cryptocurrency by market capitalization traded at US$18,432 at 10:30 p.m. Hong Kong time, according to CoinMarketCap.
• All cryptocurrencies in the top 10, excluding stablecoins, traded in red after the CPI data was released.
• CPI was up 8.2% from a year earlier, higher than the expected 8.1%, hinting the Federal Reserve will likely continue to raise interest rates to bring inflation down to 2%.
• The latest CPI report is the last before the U.S. midterm elections next month.
• The S&P 500 opened 1.58% lower on Thursday than the previous close while Nasdaq Composite opened 2.74% lower. 

• The core CPI, which excludes energy and food prices, rose 6.6% over the past year, the largest 12-month increase since August 1982, according to the BLS. 

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