Bitcoin is back below $81,000 as Fed rate uncertainty weighs
Bitcoin prices have dipped below $81,000 as investors react to higher-than-expected U.S. inflation data and uncertainty regarding Federal Reserve interest rate hikes. Market liquidity has tightened as traders adjust their expectations for future monetary policy.
Why it matters
The volatility in cryptocurrency markets highlights the sensitivity of digital assets to macroeconomic indicators and central bank policy shifts.
The largest cryptocurrency by market value was trading just below $81,000 early Thursday, down nearly 1% since midnight UTC. Prices came close to $80,000 on Wednesday before a brief rebound to about $81,500, but that gain has largely reversed during the Asian session, CoinDesk data show.Prices are down more than 2% in the past 24 hours.
Tokens such as ether ETH $2,359.13 , XRP (XRP), solana (SOL) are down 3.5% to 4%. PYTH is the only top-100 cryptocurrency still up more than 7%.
Data released Wednesday showed consumer prices rose 3.7% in the 12 months through September, up from 3.4% in August and above economists’ expectations. Core CPI, which excludes food and energy, climbed 2.6%, accelerating from 2.4% the previous month.
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