Why Is Crypto Down? Hotter CPI Fuels Fears on Fed Rate Cuts

Crypto slid as hotter-than-expected U.S. inflation reignited rate-cut worries, with Bitcoin down 4% over 24 hours and Ethereum about 6.5% lower. The latest Consumer Price Index showed September rising 0.6% month-on-month and 3.7% year-on-year, while core CPI gained 0.3% monthly and 2.6% annually. Gasoline prices jumped 9.1%, driving more than half of the headline increase. CME FedWatch briefly implied a 31.6% chance of a hike on October 28 before repricing to a 75% probability of staying on hold. The move fed into broader risk-off selling, hitting equities and AI-linked stocks alongside crypto.