A CoinShares market report said U.S. consumer price data for September came in stronger than expected, with CPI rising 0.6% month over month and 3.7% year over year, above the 3.6% market expectation cited in the report. Gasoline prices climbed 9.1% during the month and accounted for roughly half of the overall increase. Core CPI rose 0.3% on a monthly basis and 2.6% from a year earlier.
The same report said U.S. retail sales increased 0.8% in September, ahead of an expectation of about 0.3%, while August was revised up to 1.3%. Excluding gasoline, however, retail sales rose just 0.2%, below August’s 1% gain. CoinShares said inflation remains elevated and demand in the economy is still resilient, prompting markets to reprice Federal Reserve policy in a more hawkish direction.
According to the report, Bitcoin and the broader digital asset market moved lower after the data. Since the CPI release, market sentiment has weakened noticeably, and global digital asset investment products have seen $434 million in outflows so far this week. As of Oct. 15, Polymarket data showed a roughly 75% probability that the Federal Reserve would leave rates unchanged at its October meeting, versus about a 25% chance of a 25 basis point rate increase.
According to a CoinShares market report, U.S. CPI rose 0.6% month over month and 3.7% year over year in September, above the 3.6% market expectation cited in the report. Gasoline prices increased 9.1% during the month and accounted for roughly half of the overall rise.
Core CPI rose 0.3% from the previous month and 2.6% from a year earlier.
Retail sales also came in ahead of forecasts
In the same period, U.S. retail sales rose 0.8% month over month in September, above an expectation of about 0.3%, while August was revised up to 1.3%. Excluding gasoline, retail sales increased only 0.2%, below the 1% recorded in August.
Markets repriced the Fed outlook after the data
The report said inflation remains high while economic demand has stayed resilient. Markets then repriced Federal Reserve policy in a more hawkish direction, and Bitcoin along with the broader digital asset market moved lower.
Data in the report showed that sentiment has weakened notably since the CPI release, with global digital asset investment products posting $434 million in outflows so far this week.
On rate expectations, Polymarket data as of Oct. 15 showed about a 75% probability that the Federal Reserve would keep rates unchanged at its October meeting, and about a 25% probability of a 25 basis point increase. After the CPI release, the futures market turned clearly more hawkish, and expectations for another rate hike this year rose sharply.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
