Hot US CPI Sparks Rate Hike Fears, Crypto ETF Outflows
Hot CPI data renewed concerns of further interest rate hikes, triggering wild swings in US Treasuries, $261.5M in spot BTC ETF outflows, and $129.5M in ETH ETF outflows in a single day.
What we know
TheBlockCo reported spot BTC ETFs shed $261.5M and spot ETH ETFs lost $129.5M on Wednesday as the hot CPI data spooked investors. FT ran an opinion piece titled 'CPI comes in hot, AI goes cold.' an account on X described 'a wild ride in US Treasuries' with a sharp yield reversal after the data. All eyes today are on PPI, Retail Sales, and Jobless Claims at 08:30 EST, with two Fed speakers later per another account on X. One macro analyst (another account on X) argues the declining DXY and bond yields signal the 'last phase of the equity bull market' where crypto and small caps will soar before the cycle ends.
How the story developed
Hot CPI data renewed concerns of further interest rate hikes, triggering wild swings in US Treasuries, $261.5M in spot BTC ETF outflows, and $129.5M in ETH ETF outflows in a single day.
September CPI came in at 3.7% (est. 3.6%), with Core CPI at 2.6%; markets sold off with Nasdaq down 1%, and October rate hike expectations surged to 43%. Gasoline accounted for ~half the gain, suggesting an energy-shock dynamic rather than broad inflation.
Sources
“Spot bitcoin ETFs shed $261.5M on Wednesday, while spot ether ETFs saw $129.5M in net outflows”
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View post →By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.