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.