Bitcoin fell after a stronger-than-expected U.S. inflation report pushed investors to reassess the path of Federal Reserve interest rates. The cryptocurrency dropped 1.5% to $82,142 on Wednesday, while other major digital assets also declined as Treasury yields moved sharply higher and leveraged crypto positions were liquidated.
Inflation exceeds expectations
The U.S. Consumer Price Index rose 0.6% in September and was 3.7% higher than a year earlier, according to figures from the Bureau of Labor Statistics. Annual inflation increased from 3.4% in August and exceeded economists’ 3.6% forecast.
Gasoline was the main immediate source of pressure. Prices at the pump jumped 9.1% in September, accounting for more than half of the monthly CPI increase. Oil has traded above $90 a barrel for most of the past two months amid the war between the U.S. and Iran, and more expensive fuel can raise transportation, production and shipping costs across the economy.
The report also showed that underlying price pressures were somewhat stronger than anticipated. Core CPI, which excludes the more volatile food and energy categories, rose 2.6% from a year earlier, compared with the 2.5% forecast. Core inflation is closely watched by the Federal Reserve because it offers a clearer indication of whether price increases are spreading through areas such as rents, airfares and services.
According to Decrypt, the data caused market expectations for an October rate increase to change quickly. Traders had assigned about a 22% probability to a hike before the report. Afterward, the implied odds rose to roughly 44% to 49% for the Federal Reserve’s October 27-28 meeting, based on CME FedWatch. The central bank had already lifted its policy rate in September to a range of 3.75% to 4.00%.
Higher yields pressure crypto markets
Treasury markets reacted immediately to the inflation figures. The two-year Treasury yield, which tends to track expectations for near-term Federal Reserve policy, increased by about 10 basis points to approximately 4.9%. The 10-year yield climbed to about 5.3%, close to levels not seen in roughly 24 years.
Higher yields can make riskier assets less attractive. A government bond offering a yield near 5.3% competes for investors’ attention with assets such as Bitcoin, which does not pay interest. Higher rates can also increase borrowing costs, support the dollar and reduce the availability of the inexpensive money that often helps speculative assets.
The reaction was not limited to digital assets. The S&P 500 fell 0.6% and the Nasdaq declined 0.8% after the inflation report. In crypto markets, moves can be amplified because many traders use borrowed funds. If prices fall past preset levels, exchanges can automatically close leveraged positions. Those forced sales can add to downward pressure and trigger further liquidations.
More than $281 million in crypto derivatives positions were liquidated over the previous 24 hours, with most of the activity occurring in the preceding four hours. Bitcoin long positions—trades that had been positioned for a price increase—accounted for most of the liquidations.
Ethereum fell 2.8% to $2,440, Solana declined 1.9% and XRP lost 1.3%. The total cryptocurrency market capitalization decreased 0.7% to $2.8 trillion.
Bitcoin levels in focus
Bitcoin opened at $83,066 and traded near $82,211 in the chart analysis cited by the report, after closing at $82,142 for a 1.5% decline. The token remained within the $81,847-to-$82,305 Fibonacci “golden zone,” an area that technical traders often monitor during pullbacks. The next support level identified was $81,603.
Several indicators offered a mixed picture. Bitcoin’s 50-day average remained above its 200-day average, a formation traders commonly interpret as evidence that the longer-term uptrend is still intact. The Average Directional Index stood at 27.7, down from 29.9 on Tuesday. Readings above 25 are used to indicate a confirmed trend, although the decline suggested less strength than the previous day.
Momentum was less clearly positive. The Relative Strength Index slipped to 48.7, just below the 50 level that separates bullish and bearish momentum in this framework. The Squeeze Momentum Indicator had remained active for eight sessions, pointing to compressed volatility and the possibility of a larger move. Its reading of -0.76 leaned slightly bearish.
A daily close below $81,603 would move attention to the $80,365 swing low and the nearby trend band around $80,284. A further break could expose $78,003. On the upside, the levels identified for Bitcoin were $84,245, followed by $85,301, $86,644 and the October high of $87,422.
Moneyiar market picture
Moneyiar market data at 21:34 on October 15, 2026, showed Bitcoin at $82,165.8754, up 0.4% over 24 hours and 0.68% over seven days. Holo was priced at $0.0003881409, up 1.13% in 24 hours but down 4.88% over seven days.
Holoworld AI stood at $0.0595358339, with gains of 1.92% over 24 hours and 0.99% over seven days. Ore traded at $120.6793336, up 0.58% on the day and 15.36% over the week.
The next scheduled inflation-related data point is the Producer Price Index, which measures what businesses pay for goods and services. The Federal Reserve is due to announce its next rate decision on October 28.
