Bitcoin Reacts to Hotter-Than-Expected Inflation Data

Earlier today, the U.S. Bureau of Labor Statistics reported that the annual inflation rate had increased to 2.4%, exceeding analysts' expectations.

Bitcoin is currently changing hands at $60,533 on the Bitstamp exchange, with the report having relatively little impact on its price action. The cryptocurrency has plunged by nearly 3% over the past 24 hours. 

The recently published consumer price index (CPI) recorded a 0.2% increase in September. Prior to this, economic experts predicted that the September CPI would grow only by 0.1%.

The hotter-than-expected inflation might prompt the U.S. Federal Reserve to delay the implementation of another rate cut in November. 

Regan Capital's Skyler Weinand has predicted that the Fed will put further rate cuts on hold "for the time being." 

At the same time, Holly Newman Kroft, Neuberger Berman Private Wealth managing director, recently opined that the CPI report will have little impact on the market. 

The CPI is a little bit higher than expected, but it doesn't change our view of the market at all," she told CNBC earlier today. 

The analyst expects the Fed to continue cutting rates despite the slight uptick in inflation. 

Jason Furman, an American economist and professor at Harvard University, has opined that the inflation risk scenario is "less bad than it was." However, the Fed still has some work to do. 

The odds of the Fed implementing a 25-basis point rate cut in November currently stand at 81% on Polymarket. This means that bettors were largely unfazed by the recent CPI report despite some speculation that the Fed might be considering a pause.