The U.S. Consumer Price Index (CPI) data for September was disappointing, with inflation rising faster than market expectations. This result may increase the likelihood that the Federal Reserve will keep interest rates unchanged at its November policy meeting, increasing expectations of a pause in rate hikes.

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The current price of Bitcoin is $60,566. Although the overall trend is downward, there is still some volatility. From the current liquidation chart and daily chart analysis, BTC is likely to rebound to about $61,800 or higher in the short term. Tonight's PPI data is worth paying attention to, and the forecast results may be higher than expected.

Specifically, the CPI rose 0.2% month-on-month in September, higher than the expected 0.1% and the same as in August. At the same time, the core CPI, which excludes food and energy prices, rose 0.3%, also exceeding the market forecast of 0.2%. These data show that inflationary pressures still exist, especially the stubborn core inflation, with an annual growth rate of 3.3%, higher than 3.2% in August.

With the release of this set of inflation data, the cryptocurrency market such as Bitcoin has been further hit. Over the past 10 days, the price of Bitcoin has continued to be under pressure, and after the release of the inflation data, the price of Bitcoin fell again and is currently at $61,178, down about 2.5% from 24 hours ago.

In September, the Federal Reserve unexpectedly adopted a more aggressive monetary policy, cutting interest rates by 50 basis points at one time, while the market had expected only 25 basis points. This move led to a strong rebound in the crypto market as investors expected the Federal Reserve to make another large interest rate cut in November. However, with the hawkish signals released by Federal Reserve Chairman Jerome Powell and other officials, coupled with the previous strong employment report, market expectations for further interest rate cuts have gradually faded.

According to CME's FedWatch tool, before the release of inflation data, the market had already expected that the probability of the Fed cutting interest rates in November was almost zero. Last week, the interest rate market predicted that the probability that the Fed would not cut interest rates in November rose to 26%, while a week ago, the probability was 0%. The inflation data released on October 10 may further strengthen this expectation, and the possibility of the Fed cutting interest rates significantly is almost non-existent.

While the strong CPI data weighed on market sentiment, a softer performance in the job market may ease investor concerns somewhat. The latest number of initial jobless claims reached 258,000, significantly higher than the previous 225,000 and market expectations of 230,000.

Although the aggressive start of rate cuts may trigger recession concerns, global liquidity is abundant and cryptocurrencies may continue to benefit from rate cuts and demand for hedging against dollar risks. Bitcoin's characteristics as a hedging tool, especially against the backdrop of increasing US debt risks, have attracted more and more attention from investors.