Fed Rate Hike Bets Weigh on Bitcoin Ahead of Key U.S. Inflation Report

Federal Reserve Governor Christopher Waller has strengthened expectations of a December rate increase, maintaining that monetary tightening may still be necessary even if inflation declines. Meanwhile, easing oil prices are providing some relief across financial markets, while Anthropic has withdrawn previously circulated IPO pricing figures.

Bitcoin fell further on Tuesday, losing 1.4% since midnight UTC and trading around $74,200. The decline reflected growing concerns about another Federal Reserve rate hike as investors awaited the latest U.S. inflation report. The CoinDesk 20 Index (CD20), which measures the performance of leading cryptocurrencies, dropped 1.2% over the same period but remained nearly unchanged over the previous 24 hours.

Waller’s latest statements added to the uncertainty surrounding the Fed’s monetary policy outlook. He expressed support for raising interest rates in December even if October’s inflation figures showed signs of improvement. He also suggested that a stronger-than-expected CPI reading could justify a more substantial 50-basis-point increase.

Market expectations currently favor a 25-basis-point adjustment at the Federal Reserve’s December 9 meeting. According to the CME FedWatch Tool, this would move the benchmark interest-rate range to 4.00%-4.25%.

Ahead of the inflation announcement, economists projected that headline CPI would increase 0.3% month over month in October. Core CPI, which excludes food and energy prices, was expected to record a 0.2% gain.

The Bureau of Labor Statistics will not release annual inflation comparisons because the October 2025 government shutdown interrupted price collection, preventing a year-over-year comparison. September’s headline and core inflation rates were previously reported at 3.7% and 2.6%, respectively.

Meanwhile, declining crude prices offered a temporary positive signal for investors. Oil benchmarks lost approximately 2% over 24 hours, with West Texas Intermediate falling to around $84 per barrel, its weakest level since late August. Brent crude traded near $90 after President Donald Trump indicated that further attacks against Iran would be suspended.

Gold prices also moved lower, declining slightly more than 1% to below $4,100 per ounce. Nasdaq 100 futures slipped following Monday’s gains, while the U.S. Dollar Index held relatively steady below 102.

Separately, Anthropic, the artificial intelligence company behind Claude, has withdrawn preliminary IPO pricing information previously distributed to investment bankers, Reuters reported.

The proposed terms reportedly involved approximately 867 million shares offered at $70-$80 each, potentially allowing the company to raise as much as $69.3 billion.

Anthropic said the information was incorrect and confirmed that revised details would be provided in an updated filing. However, it did not disclose which figures were inaccurate, leaving the company’s planned IPO pricing and fundraising objectives uncertain.