Live Updates: BTC Drops Further as Inflation Report Fuels Market Uncertainty

The possibility of another Federal Reserve rate increase in December has gained traction, with Governor Christopher Waller suggesting that policymakers could even consider a 50-basis-point hike if inflation remains stronger than expected.

Bitcoin falls further as October inflation data misses expectations

U.S. inflation showed signs of cooling in October, but the improvement was insufficient to satisfy market expectations. Price pressures remained above the Federal Reserve’s 2% target, increasing the likelihood that the central bank will raise interest rates again during its final policy meeting of the year.

The Consumer Price Index (CPI) recorded a monthly increase of 0.4% in October, compared with September’s 0.6% rise. Economists had forecast a more moderate increase of 0.3%.

Meanwhile, core CPI, which excludes food and energy prices, climbed 0.3%. The reading was unchanged from September and exceeded the 0.2% increase expected by analysts.

The Bureau of Labor Statistics did not publish the annual CPI rate because the October 2025 inflation report was missing due to the government shutdown at that time.

Following the announcement, Bitcoin extended its decline, shedding approximately another 1% to trade near $73,600. U.S. equity futures also turned lower, with Nasdaq 100 futures falling 1.15% and S&P 500 futures losing 0.5%.

Treasury yields had already advanced before the inflation figures were released, reflecting growing concerns about the Federal Reserve’s next move. Christopher Waller had indicated overnight that he supported a December rate increase even if October inflation showed signs of moderation. He also warned that a stronger reading could justify a 50-basis-point adjustment.

The 10-year Treasury yield subsequently climbed 6.5 basis points to 4.93%. The two-year yield increased by 14 basis points to 4.69%, as investors began pricing in a limited possibility of a larger rate increase next month.

Anthropic aims for $1.4 trillion valuation in proposed public offering

Anthropic is reportedly seeking a fully diluted valuation of approximately $1.4 trillion as it moves toward a potential initial public offering, Bloomberg reported.

The company is marketing its shares at prices ranging from $70 to $78. At the upper end, the proposed offering would imply a market capitalization of approximately $1 trillion. The higher fully diluted valuation also incorporates employee stock options, restricted shares and stock allocated for charitable matching programs.

The planned IPO and an accompanying private placement could bring in approximately $90.4 billion. The total could increase to nearly $100 billion if the company uses its over-allotment option.

Anthropic retracts preliminary IPO pricing information

Anthropic has withdrawn preliminary IPO pricing details previously shared with bankers after the information suggested that its public offering could raise as much as $69.3 billion, Reuters reported.

The circulated proposal outlined an offering of approximately 867 million shares, with an estimated price range of $70 to $80 per share.

The company behind the Claude AI platform described the information as inaccurate and said it would release an updated filing. However, Anthropic did not clarify which figures were incorrect, leaving the proposed valuation, share count and fundraising target uncertain.

Bitcoin and gold decline as traders anticipate tighter monetary policy

Market participants increased their bets on a December Federal Reserve rate increase ahead of Tuesday’s inflation announcement. Traders were pricing in a potential 25-basis-point hike at the December 9 meeting, which would move the federal funds target range to 4.00%-4.25%.

Waller’s hawkish comments further strengthened expectations of tighter monetary policy. He maintained that a December increase could be necessary even if inflation had eased, while suggesting that a stronger CPI reading might warrant a 50-basis-point adjustment.

The changing rate outlook put pressure on major financial assets. Bitcoin and gold both declined by slightly more than 1%, with BTC trading around $74,000 and gold slipping below $4,100 per ounce.

Nasdaq 100 futures also retreated after Monday’s gains, while the U.S. dollar index remained firm below the 102 mark.