Crypto retreats as higher inflation fuels rate-hike concerns, Gemini says
TLT•September consumer prices rose 0.6%, up from 0.4% in August, while bitcoin fell below $82,000 and ethereum dropped below $2,500. Traders assigned a 69% probability to unchanged Fed rates at October’s meeting.
1. Inflation and markets
September consumer prices rose 0.6%, compared with 0.4% in August, increasing the risk of further Federal Reserve rate hikes. Bitcoin fell below $82,000 before rebounding Thursday, while ethereum dropped below $2,500. The Philadelphia Semiconductor Index lost 12% over six trading sessions, wiping out $1.6 trillion in market value.
2. Fund flows and rate outlook
BlackRock’s crypto ETF assets reached $79.6 billion in the third quarter, supported by $7.9 billion in inflows. Despite inflation pressures, prediction market traders assigned a 69% probability to unchanged Fed rates at October’s meeting.
