Hot CPI Halts Bitcoin's Rebound

Hotter-than-expected consumer price inflation readings released from the U.S. on Wednesday morning dampened sentiment in the cryptocurrency market. Overall market capitalization has dropped close to half percent overnight while market leader Bitcoin traded between $84,049 and $82,283.

The U.S. Bureau of Labor Statistics released the consumer price inflation readings for September on Wednesday morning which showed hotter-than-expected inflation position. Headline annual inflation which was seen rising to 3.6 percent from 3.4 percent in the previous month recorded 3.7 percent. The core component thereof which was seen rising to 2.5 percent from 2.4 percent in the previous month actually recorded 2.6 percent. Headline inflation on a month-on-month basis increased as expected to 0.6 percent from 0.4 percent in August. The core component thereof which was expected to edge down to 0.2 percent from 0.3 percent in August unexpectedly remained steady at 0.3 percent.

Minutes of the September meeting released recently had revealed a Federal Open Markets Committee focused on inflation combat. With the current inflation update surpassing consensus estimates, markets have renewed expectations of multiple rate hikes by the Federal Reserve.