Investing.com – US inflation data released today showed that inflation did not snail-paced as much as expected in September, apparently disappointing bulls.
The just-released report showed overall inflation was 2.4% year-on-year, down slightly from the previous 2.5% but still higher than the 2.3% forecast by economists. Meanwhile, the “” inflation measure, which excludes the more volatile food and fuel costs, rose to 3.3%.
After reaching $61,246 during the European session, the main coin fell by about 0.2%. the price dropped by as much as 2.4%, while other cryptocurrencies also fell, including (-1.1%).
Higher-than-expected inflation data is fueling speculation that the Fed will pause interest rate cuts, strengthening the strength of the dollar and causing risk aversion in risky markets, including cryptocurrencies.
CME’s FedWatch tool now indicates an 85% probability that the Federal Reserve will cut interest rates by 25 basis points at its November 7 meeting, up from 65% a week ago. Previously, there was a 35% chance that the Fed would make another 50 basis point cut before the end of the year, after the initial cut in September.
Cryptocurrency prices have been highly sensitive to U.S. economic data in recent months, often reacting as investors gravitate toward stability over riskier assets.
Meanwhile, it was a silent day for Bitcoin ETFs despite an outflow of over $30.5 million on Wednesday, with nine of the 11 funds showing no movement in either direction. A day earlier, US-listed BTC ETF funds recorded the highest inflow since September 27, and the net enhance amounted to $235.2 million. The leader was the Fidelity Wise Origin Bitcoin Fund (NYSE:), which brought in $103.7 million, and the next fund, iShares Bitcoin Trust (NASDAQ:), owned by BlackRock, earned $97.9 million.
Bitcoin ETFs have attracted nearly $19 billion in net inflows since January. However, the Ether ETFs saw zero flows in either direction yesterday, the second time this week and third time since their launch that the funds have shown no activity, resulting in net outflows of $562 million since their July debut.
Additional U.S. economic data to be released on Thursday includes a weekly jobless claims report, real earnings data, a monthly retail chain sales index and a Treasury budget report for this month.
