Bitcoin Faces Pressure as October CPI Pushes 10-Year Yield Toward 5%

Bitcoin (BTC) came under pressure as October inflation data spurred expectations for tighter U.S. monetary policy, with the 10-year Treasury yield moving back toward 5% and markets weighing a larger December rate increase.

The U.S. consumer price index (CPI) rose 0.4% in October, down from 0.6% in September. Core CPI increased 0.3%, matching its monthly gain in each of the previous two months. Food prices rose 0.5%, services excluding rent increased 0.5%, and energy prices climbed 0.7%, compared with a 5.2% increase in September.

Federal Reserve Gov. Christopher Waller had said that if October’s core reading resembled the prior two monthly readings, a gain around 0.3% or higher should put a 50-basis-point increase at the December meeting under consideration. October’s core reading met the threshold Waller had set for considering a larger December move.

Bitcoin reacted negatively as markets repriced rate expectations. Expectations for tighter policy in December and early 2027 also increased.

Enna Lee

Enna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to [email protected].