Bitcoin (BTC) dipped toward $74,000 on Tuesday, mirroring a broader decline in US stock futures. The drop came after Federal Reserve governor Christopher Waller expressed support for a 0.25% interest-rate hike at the December 9 FOMC meeting, regardless of upcoming inflation data.
At the time of writing, Bitcoin traded 1.3% lower, reaching $74,080 on Bitstamp. Nasdaq 100 futures also fell 0.4% ahead of the Wall Street open. Waller's remarks shifted market expectations, with the probability of a December rate hike surging from 76.3% to 96.3%, according to CME Group's FedWatch Tool.
Waller emphasized that even if October's Consumer Price Index (CPI) data shows a slower monthly increase of 0.3%, down from September's 0.6%, he would still back the rate hike. The CPI data is set to be released at 8:30 am Eastern time on Tuesday. Waller also highlighted that the Personal Consumption Expenditures (PCE) index, the Fed's preferred inflation gauge, remains a key focus.
Analysts noted that the expected slowdown in CPI could be attributed to declining fuel and shelter prices. However, the Bureau of Labor Statistics confirmed that Tuesday's release would only include month-on-month statistics due to the 2025 US government shutdown, which limited data availability.