US inflation exceeded forecasts in October, increasing expectations of a larger Federal Reserve rate hike in December. The Consumer Price Index rose 0.4% month over month, above the 0.3% forecast, while core inflation increased by 0.3%, exceeding the expected 0.2%. Markets now price in approximately 27 basis points of tightening in December, with an 88.3% probability of a 25-basis-point hike and an 11.7% probability of a 50-basis-point increase. The crypto market declined, with total market capitalization falling 1.6% to $2.57 trillion over 24 hours, while Bitcoin, Ether and Solana fell 2%, nearly 5% and 5.6%, respectively. Experts warned that higher borrowing costs could reduce the returns of leveraged strategies and weaken the appeal of crypto investments compared with less risky traditional assets.
Source: Read the original article
