Bitcoin and ether up as U.S. inflation data below estimates at 7.7% in October

Quick Take

  • Bitcoin was trading up at $17,431, while ether rose 6% to trade at $1,295 on Thursday. 
  • U.S. inflation data shows signs of cooling off as it came in below estimates in October at 7.7%.

U.S. inflation is showing signs of cooling down as crypto markets remain tumultuous. 

Inflation in the U.S. came in at 7.7% in October. Based on FactSet data, analysts had predicted an 8% increase in October. The month-on-month increase was 0.4%. In September, inflation increased by 0.4% month-on-month from August. 

The Fed said last week it might slow the rate of its interest rate increases going forward. However, Fed Chair Jerome Powell did note that the eventual rate reached may be higher than initial estimates. The next Fed meeting is Dec. 14. 

source: and

Interest rate traders are now pricing in an 80% chance of a 50 basis point increase at the December meeting, according to the CME's FedWatch tool. 

Bitcoin was trading at $17,431 in early trading, according to data via Coinbase. The leading cryptocurrency by market cap gained over 5% since the inflation data was released. Ether gained 7% in the hour since, trading at $1,295.

Crypto markets have been dominated by news of Sam Bankman-Fried's exchange this week, after it came under scrutiny last week when a balance sheet relating to Alameda Research — a trading shop he also owns — was leaked.

The balance sheet showed significant liabilities and holdings of FTT, FTX's exchange token. Selling pressure from Binance of FTT on Sunday increased the heat on FTX and Bankman-Fried's trading arm. By Tuesday, Binance had entered an agreement to acquire the struggling exchange — the deal was off by Wednesday after a review of FTX's finances.

Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.

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