Bitcoin nears 11-week lows and Nvidia shares drop 4% as a 0.4% October CPI print fuels expectations for a December Federal Reserve interest rate hike.
Bitcoin fell to $73,518 at Tuesday's Wall Street open, its lowest level since Aug. 21, after October CPI came in at 0.4% month-on-month versus 0.3% expected. Markets now price a December Fed rate hike (85.3% odds of 25bp, 14.7% of 50bp), which weighs on risk assets like BTC.
Nvidia stock fell nearly 4% on Tuesday amid a board investigation into whether CEO Jensen Huang was targeted by a foreign intelligence effort, compounding pressure on tech stocks from the above-forecast October CPI print.
The Nasdaq opened down 0.6% at Tuesday's open as above-forecast CPI (0.4% MoM) added to headwinds including strong jobs data and tighter AI-sector regulation prospects. However, it recouped the losses, and analysis flagged a put/call ratio spike above 1.0 that may signal a long-term bottom rather than further downside.
The above-forecast October CPI (0.4% MoM vs 0.3% expected) made markets more hawkish on the Fed: odds of a 25bp December hike rose to 85.3% with 14.7% for a 50bp hike, supporting the dollar via higher expected rates.
Bitcoin dipped to $73,518, its lowest level since Aug. 21, following an October CPI print of 0.4% that exceeded the 0.3% forecast. The data prompted markets to adjust December Fed rate hike expectations, with an 85.3% probability now assigned to a 25-basis-point increase. Meanwhile, Nvidia shares fell nearly 4% amid a board investigation into CEO Jensen Huang.
US October inflation came in above forecasts, pushing markets to price in a December Fed rate hike, and Bitcoin dropped to around $73,500, its lowest level since Aug. 21.
Nvidia fell nearly 4% as its board investigates whether CEO Jensen Huang was targeted by a foreign intelligence effort, alongside general tech weakness after the hot inflation report.
It opened down 0.6% after the hot CPI print but recouped the losses, while elevated put/call readings suggested heavy selling pressure that some analysts view as a potential bottom signal.
After the 0.4% MoM October CPI beat, markets price an 85.3% chance of a 25-basis-point hike and 14.7% chance of a 50-basis-point hike at the Fed's December meeting.