The September U.S. inflation statistics surprised economists. The Consumer Price Index (CPI) increased 0.2%, above the projected 0.1%. Year on year, CPI rose to 2.4%, beating the expected 2.3%.
Core CPI, which excludes food and energy expenses, rose 0.3% monthly and 3.3% yearly. Both figures exceeded projections. Bitcoin has responded poorly to the news. The Bitcoin price fell, trading below the $61K level at the time of writing.
The Federal Reserve's latest 50 basis point rate cut ignited a crypto rally. However, Fed members' hawkish statements and solid job numbers defied expectations. Markets now foresee a halt in rate decreases in November.
Today's inflation report validates this idea. However, poor employment data may balance fears. Initial unemployment claims rose to 258,000, well beyond the projected 230,000.
The cryptocurrency market remains vulnerable to economic data. Investors eagerly watch inflation and employment statistics for hints about potential Fed measures. These variables continue to impact Bitcoin price changes in the short term.
