Hot U.S. Inflation Pushes the Crypto Market Into the Red
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U.S. inflation is heating up, and the crypto market is paying the price. Within 24 hours, almost all major crypto assets lost value: According to CoinMarketCap, Bitcoin fell 1.8 percent to about $82,000, and Ethereum dropped 3.3 percent to about $2,430. Stellar (down 4.5 percent), Chainlink (down 4.4 percent), Cardano (down 3.9 percent) and NEAR (down 3.6 percent) fell even more sharply. New U.S. inflation data that came in hotter than expected is adding pressure, along with fears of another interest rate increase by the Federal Reserve.
Prices at a Glance
The table below shows the largest crypto assets by market capitalization, excluding the stablecoins Tether and USDC, which remain pegged to the U.S. dollar.
| Crypto asset | Price | 24 hours | 7 days |
|---|---|---|---|
| Bitcoin (BTC) | $82,009.95 | −1.82% | −1.39% |
| Ethereum (ETH) | $2,433.94 | −3.25% | −5.01% |
| BNB (BNB) | $733.52 | −1.40% | −4.41% |
| XRP (XRP) | $1.33 | −2.43% | −6.65% |
| Solana (SOL) | $104.43 | −3.09% | −10.07% |
| Tron (TRX) | $0.3329 | +1.63% | −0.47% |
| Hyperliquid (HYPE) | $80.07 | −2.26% | −10.06% |
| Zcash (ZEC) | $1,189.28 | −1.37% | −10.41% |
| Dogecoin (DOGE) | $0.08206 | −3.09% | −7.28% |
| Monero (XMR) | $549.04 | +3.15% | −0.87% |
| Chainlink (LINK) | $12.42 | −4.44% | −7.37% |
| Cardano (ADA) | $0.2277 | −3.91% | −10.40% |
| UNUS SED LEO (LEO) | $9.03 | +1.45% | +1.75% |
| Stellar (XLM) | $0.1834 | −4.53% | −9.04% |
| NEAR Protocol (NEAR) | $4.90 | −3.62% | −3.11% |
The CoinMarketCap 20 Index, which tracks the 20 largest crypto assets, is down 1.77 percent over 24 hours.
Altcoins Fall Harder Than Bitcoin
As is often the case in nervous markets, altcoins are taking a bigger hit than Bitcoin. Ethereum, Solana and Dogecoin each lost more than 3 percent over the past 24 hours, almost twice as much as Bitcoin. Order books for smaller coins are thinner, retail investors trade them more often with leverage, and many shift into Bitcoin or stablecoins during uncertain periods. That extends a trend: Over the week, Solana, Cardano, Hyperliquid and Zcash have each shed more than 10 percent. As recently as mid-September, coins such as Uniswap, NEAR, Zcash and Hyperliquid had posted double-digit gains.
Only a few assets are bucking the trend: Monero rose 3.2 percent within 24 hours, Tron 1.6 percent and Bitfinex’s UNUS SED LEO token 1.5 percent.
The Backdrop: Inflation, Jobs and Interest Rates
The U.S. inflation data for September added further pressure. Consumer prices rose 3.7 percent from a year earlier, up from 3.4 percent in August. Economists had expected 3.6 percent. Energy prices were the main driver: Gasoline prices jumped 9.1 percent in September alone because of the war with Iran. Core inflation, which excludes food and energy, also rose, from 2.4 percent to 2.6 percent, again above expectations.
That is a bad sign for crypto, because the Fed already raised its benchmark rate in September to a range of 3.75 to 4 percent. After the inflation data, the probability of another increase at the Fed’s next meeting in late October rose from 22 percent to 49 percent, according to CME FedWatch. The yield on 10-year Treasury notes climbed to about 5.3 percent, and the dollar index reached its highest level since April 2025. Higher interest rates and a strong dollar make risky assets such as cryptocurrencies less attractive.
At the same time, the U.S. labor market is weakening. The economy added just 29,000 jobs in September, according to the Bureau of Labor Statistics, and the unemployment rate rose to 4.2 percent. July’s figure was even revised to a loss of 10,000 jobs. Wages grew 3 percent from a year earlier, more slowly than prices. The combination of rising inflation and a weak labor market is fueling fears of stagflation and leaves the Fed in a bind.
External pressures add to the strain: The war with Iran is driving up oil prices, and stock markets are increasingly doubtful that the enormous investments in A.I. will pay off. South Korea’s benchmark KOSPI index recently plunged 5.5 percent.
The Counterpoint: Bitcoin Is Holding Up Comparatively Well
Some indicators argue against a lasting downturn. Bitcoin has lost only 1.4 percent over the week. The largest cryptocurrency had traded in a range between $83,000 and $87,000 for weeks, and after briefly slipping below $81,000 last week, it is holding above $82,000 again. In addition, U.S. Ethereum ETFs recently recorded their first inflows after 10 straight trading days of outflows.
