Bitcoin Falls as Hot Inflation Puts a Fed Hike Back on the Table

September CPI came in at 3.7%, hotter than expected, pushing Treasury yields higher and reviving expectations that the Federal Reserve could hike rates again. Bitcoin fell alongside stocks as risk assets sold off on the prospect of tighter monetary policy. Traders care because higher rates raise the opportunity cost of holding non-yielding assets like crypto, and the inflation print resets the macro backdrop for the coming weeks.