Bitcoin (BTC) and Ether (ETH) each fell about 0.9% in early Asian trading Thursday, as investors priced in a December Federal Reserve rate hike after U.S. inflation came in higher than expected.
Bitcoin slipped to $73,517, and Ether traded at $2,047.
U.S. interest-rate futures are pricing an 87.3% chance of a quarter-point increase in December and a 12.7% chance of a half-point hike, according to CME Group’s FedWatch tool, as cited by Reuters.
The U.S. dollar index, which measures the greenback’s strength against a basket of six currencies, held at 102.87, near its highest level since April 2025, after gaining 0.6% on Wednesday.
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October inflation keeps a larger hike in play
The U.S. consumer price index (CPI) rose 0.4% in October from the previous month. This was higher than the expected 0.3% increase, Reuters reported.
Core CPI, which excludes food and energy, rose 0.3% for a third straight month, according to the Bureau of Labor Statistics.
Fed Governor Christopher Waller said before the inflation report that he leaned toward a quarter-point hike in December. He said the central bank should consider a half-point increase if monthly core inflation came in around 0.3% or higher.
The October report matched that level.
The Fed held its benchmark rate at 3-3/4 to 4% in October after raising it by a quarter point in September.
The central bank will announce its next decision on December 9. The November U.S. jobs report is scheduled for December 4, while the next CPI report is due December 10, a day after the Fed decision.
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