US Inflation Announced to Remain High, This is the Reaction of the Crypto and Bitcoin Markets

The US Bureau of Labor Statistics has released the latest CPI data showing that US inflation rose 3.7% in September, more than market estimates. The price of Bitcoin (BTC) remained in the US$ 26,800 zone after the CPI data for September was released.

Meanwhile, global financial markets have recently been very volatile due to increasing concerns about the Israel-Hamas war and other macroeconomic events. Notably, the crypto industry has struggled to remain in positive territory, as investors continue to wait and see.

Investors eagerly await key economic data, for cues about the economy's upcoming direction. Meanwhile, the latest PPI data, another core metric of inflation, was released by the Labor Department on Wednesday

PPI data showed that inflation, although slowing compared to August, was higher than expected. This has raised concerns among investors, as this will give the Fed more room to announce further interest rate hikes at its upcoming meeting.

Most Fed officials are likely to raise interest rates again later in the year to support high interest rates until annual inflation stabilizes at 2%.

Following the CPI data, the US Dollar Index rose 0.21% to 105.790 on Thursday. On the other hand, the 10-year US Bond Yield at the same time strengthened 0.17% to 4,601.

Notably, the CME Fed Watch Tool now indicates a 92.5% probability that the Fed will pause its rate hikes at the end of its next meeting on November 1.