Bitcoin Extends Decline as Inflation Data Disappoints Markets

A Federal Reserve rate increase in December now appears increasingly likely, with Fed Governor Christopher Waller indicating that a 50-basis-point hike could also be justified.

October CPI disappoints, pushing Bitcoin and stocks lower

U.S. inflation eased slightly in October compared with September’s elevated reading, but the latest figures exceeded market expectations and remained significantly above the Federal Reserve’s 2% target. The stronger-than-anticipated data has increased expectations of another interest-rate hike at the Fed’s final policy meeting of the year next month.

The Consumer Price Index (CPI) increased 0.4% in October, slowing from September’s 0.6% gain but exceeding economists’ expectations of 0.3%.

Core CPI, which excludes volatile food and energy prices, climbed 0.3%, matching September’s increase and coming in above the 0.2% forecast.

The Bureau of Labor Statistics (BLS) did not publish the annual CPI figure because the October 2025 inflation report was unavailable due to the government shutdown at the time.

Bitcoin extended its earlier losses, falling another 1% to approximately $73,600. U.S. equity futures also moved deeper into negative territory, with Nasdaq 100 futures declining 1.15% and S&P 500 futures dropping 0.5%.

Treasury yields had already climbed considerably before the inflation figures were released. Overnight comments from Fed Governor Christopher Waller contributed to the move after he indicated that the central bank should consider raising interest rates in December even if October’s inflation data showed signs of easing. He also suggested that a stronger-than-expected CPI reading could justify a 50-basis-point increase.

Following the release, the 10-year Treasury yield advanced 6.5 basis points to 4.93%. The two-year yield recorded a sharper increase of 14 basis points, reaching 4.69%, as traders began assigning a small probability to a larger 50-basis-point rate hike next month.

Anthropic targets $1.4 trillion valuation in potential IPO

Anthropic is reportedly seeking a fully diluted valuation of approximately $1.4 trillion through its planned initial public offering, Bloomberg reported.

The company is marketing shares within a proposed price range of $70 to $78, which would imply a market capitalization of approximately $1 trillion at the upper end. The fully diluted valuation also accounts for employee stock options, restricted shares and equity reserved for charitable matching programs.

The IPO, alongside a private placement, could generate approximately $90.4 billion. That amount could increase to nearly $100 billion if the company exercises its over-allotment option.

Anthropic withdraws IPO pricing information indicating $69.3 billion raise

Anthropic has withdrawn preliminary pricing information distributed to investment bankers that suggested its planned IPO could raise as much as $69.3 billion, according to Reuters.

The withdrawn details described a potential offering of approximately 867 million shares priced between $70 and $80 each.

The developer of the Claude AI platform said the circulated pricing information was incorrect and that it would provide an updated filing. However, the company did not clarify which figures were inaccurate, leaving the proposed share offering and pricing structure uncertain.

Traders increase Fed rate-hike bets as Bitcoin and gold retreat

Market participants increased their expectations of a Federal Reserve interest-rate increase ahead of Tuesday’s U.S. inflation release. Trading activity reflected expectations of a 25-basis-point hike at the December 9 meeting, which would raise the federal funds target range to 4.00%-4.25%.

Fed Governor Christopher Waller added to those expectations by expressing support for a December rate increase even if inflation had cooled in October. He also indicated that a stronger inflation reading could warrant a larger 50-basis-point adjustment.

Bitcoin and gold both declined by slightly more than 1%, with BTC trading near $74,000 and gold falling below $4,100 per ounce.

Nasdaq 100 futures also slipped following Monday’s gains, while the U.S. dollar index remained firm below the 102 level.

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