U.S. inflation was hotter-than-expected in September, up 0.4% month-on-month, according to the latest CPI data.
As well as this increase from August, the year-on-year read came in at 8.2%. Both of these figures were above Bloomberg estimates of 0.2% month-on-month and 8.1% year-on-year.
Cryptocurrencies were in the red across the board on Thursday ahead of this data release, with prices plunging following it.
When inflation comes in higher than expected, bitcoin typically falls an average of 4% in the 30 minutes following the release, according to QCP Capital. "This includes a 5% fall last month, and up to 7% in April this year."
JPMorgan's Marko Kolanovic expects a 75 basis point hike each from the Fed, ECB, and Bank of England going forward. Today's inflation report will do nothing to alleviate interest rate hike expectations.
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