Earlier, the US Bureau of Labor Statistics reported that annual inflation rose to 2.4%, higher than analysts expected.
Bitcoin is currently trading at $60,533 on the Bitstamp exchange, so this report has a relatively small impact on price movement. The cryptocurrency has fallen nearly 3% in the past 24 hours.
The recently released Consumer Price Index (CPI) for September recorded an increase of 0.2%. Earlier, economists had predicted that the CPI would grow by just 0.1% in September.
The US Federal Reserve may postpone further interest rate cuts in November due to higher-than-expected inflation.
Schuyler Weinand of Regan Capital predicted the Fed would hold off on further rate cuts “for the time being.”
At the same time, Holly Newman Kraft, managing director at Neuberger Berman Private Wealth, recently opined that the CPI report has little impact on the market.
“The CPI is a little higher than expected, but it doesn’t change our view of the market at all,” he told CNBC today.
The analyst expects the Fed to continue lowering rates despite a slight rise in inflation.
US economist and Harvard University professor Jason Furman opined that the inflation risk scenario is “not as bad as it used to be.” But the Fed still has some work to do.
The probability that the Fed will cut interest rates by 25 basis points in November is currently 81% in the polymarket.
