Bitcoin drops to $81,500 as U.S. inflation hits 3.7%

Bitcoin fell as much as 2.3% to around $81,500 on Wednesday after U.S. September inflation data came in hotter than expected, with the annual rate rising to 3.7% from 3.4%. The Consumer Price Index rose 0.6% in September, driven largely by a 9.1% jump in gasoline prices, while core inflation hit 2.6% annually, both exceeding economist forecasts. The stronger data boosted the dollar to its highest since May 2025 and raised expectations for additional Federal Reserve rate hikes, weighing on risk assets like ether, XRP, and Solana, which each fell close to 3%. Despite the price decline, analyst sentiment has turned sharply bullish, with 84% of analysts positive on bitcoin, up from 37% in July, according to Bloomberg. Bitcoin remains more than 30% below its record high, and the Fed's next meeting is scheduled for Oct. 27–28, with hotter inflation potentially reviving the prospect of a rate increase as soon as this month.