Key Takeaways
- • Bitcoin fell below $82,000, trading at about $81,793.2 by 02:58 ET on Tuesday, down roughly 1% on the day, after failing to hold gains above $83,000 in the prior session.
- • Oil futures hit a fresh five-month high of $111.05 a barrel amid attacks on Saudi Arabian infrastructure and ongoing Middle East disruption risks, raising inflation concerns.
- • Markets priced an 18% probability of a Federal Reserve rate hike at the October 27-28 meeting and a 75% chance of a hike in December, according to FedWatch data.
- • September U.S. consumer prices rose 3.7% year-on-year and core inflation rose 2.6%, both slightly above expectations, with gasoline up 9.1% over the month.
- • Most altcoins also declined, extending losses amid a cautious mood across crypto markets.
Summary
Bitcoin slipped below $82,000 on Tuesday as elevated oil prices and persistent geopolitical tensions weighed on risk sentiment, according to Investing.com. The world's largest cryptocurrency was trading at about $81,793.2 by 02:58 ET, down about 1% on the day. It had risen above $83,000 in the previous session but failed to hold those gains, and it has struggled to sustain a recovery after retreating from levels above $85,000earlier in the month.
Oil prices remained elevated, with futures rising as high as $111.05 a barrel, a fresh five-month high. Attacks on Saudi Arabian infrastructure and continued disruption risks in the Middle East have kept energy markets on edge, raising concerns that higher fuel costs could sustain inflationary pressures. Higher oil prices could complicate the Federal Reserve's efforts to bring inflation back toward its 2% target, potentially limiting its flexibility to ease monetary policy.
Investors are focused on the Fed's October 27-28 meeting for guidance on the path of interest rates. Markets have scaled back expectations of an imminent hike, with FedWatch data showing an 18% probability of an increase at that meeting, while traders price a 75% chance of a hike in December. Recent inflation data reinforced these concerns: consumer prices rose 3.7% year-on-year in September and core inflation rose 2.6%, both slightly above economists' expectations. Gasoline prices jumped 9.1% during the month, accounting for more than half of the monthly rise in headline consumer prices.
Tighter financial conditions and elevated borrowing costs tend to weigh on risk-sensitive assets such as cryptocurrencies, which have benefited in past periods from expectations of easier monetary policy and improved liquidity. Most altcoins also fell on Tuesday, extending losses amid a cautious market mood.
Oil prices remained elevated, with futures rising as high as $111.05 a barrel, a fresh five-month high. Attacks on Saudi Arabian infrastructure and continued disruption risks in the Middle East have kept energy markets on edge, raising concerns that higher fuel costs could sustain inflationary pressures. Higher oil prices could complicate the Federal Reserve's efforts to bring inflation back toward its 2% target, potentially limiting its flexibility to ease monetary policy.
Investors are focused on the Fed's October 27-28 meeting for guidance on the path of interest rates. Markets have scaled back expectations of an imminent hike, with FedWatch data showing an 18% probability of an increase at that meeting, while traders price a 75% chance of a hike in December. Recent inflation data reinforced these concerns: consumer prices rose 3.7% year-on-year in September and core inflation rose 2.6%, both slightly above economists' expectations. Gasoline prices jumped 9.1% during the month, accounting for more than half of the monthly rise in headline consumer prices.
Tighter financial conditions and elevated borrowing costs tend to weigh on risk-sensitive assets such as cryptocurrencies, which have benefited in past periods from expectations of easier monetary policy and improved liquidity. Most altcoins also fell on Tuesday, extending losses amid a cautious market mood.
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