Bitcoin price drops 3.6% as hot US PPI fuels Fed rate hike concerns

Bitcoin has fallen 3.6% over the past 24 hours to around $81,500 as stronger-than-expected U.S. producer inflation has renewed concerns about another Federal Reserve interest rate increase. Summary U.S. producer prices rose 1.3% in September, the largest monthly increase since March 2022. Annual wholesale inflation reached 6.3%, following Wednesday’s 3.7% consumer inflation reading. Bitcoin traded near $81,500 after recording a 24-hour low of $80,443. CME FedWatch pricing cited in the initial report put October rate hike odds at 34%. The U.S. Bureau of Labor Statistics reported on Oct. 15 that September’s producer price index rose 1.3% from August, accelerating from the previous month’s revised 0.5% increase. On an annual basis, the agency recorded a 6.3% rise in wholesale prices, the fastest increase since December 2022. The release followed Wednesday’s consumer inflation report, giving investors a second set of stronger price readings before the Fed’s October policy meeting. Bitcoin retreats after failing to clear $84,000 According to the initial market report, Bitcoin traded around $81,500 following the PPI release, with its daily decline exceeding 3.6%. The report also placed B...