Key Takeaways
- • Digital asset investment products recorded $434 million in net outflows in the week to October 16, according to CoinShares' weekly fund flows report.
- • September CPI rose 3.7% year over year versus a 3.6% consensus, with core CPI at 2.6% annually, up from 2.4% in August, per the BLS release cited in the report.
- • PPI rose 1.3% month over month and 6.3% year over year, the largest monthly increase since March 2022, according to crypto.news.
- • Bitcoin fell below $82,000 after the CPI release and traded near $81,500 after the PPI report, down about 3.6% over 24 hours.
- • CoinShares characterized the selling as a "data-driven range rather than a trend," suggesting the outflows may not signal a lasting directional shift.
Summary
Digital asset investment products recorded $434 million in net outflows in the week to October 16, according to CoinShares' weekly fund flows report. The drawdown accelerated after the Bureau of Labor Statistics reported September Consumer Price Index inflation at 3.7% year over year on October 14, above the 3.6% consensus forecast.
The inflation print was driven largely by a 9.1% surge in gasoline prices, which accounted for more than half of the 0.6% monthly headline increase, according to the BLS release. Core CPI, which excludes food and energy, rose 0.3% monthly and 2.6% annually, up from 2.4% in August, crypto.news reported. Producer prices added to the pressure the following day, with the Producer Price Index rising 1.3% in September and 6.3% year over year, the largest monthly increase since March 2022.
CoinShares described Bitcoin's current trading conditions as "difficult" but characterized the selling as part of a "data-driven range rather than a trend," suggesting the outflows may not signal a lasting directional shift. Bitcoin fell below $82,000 after the CPI release on October 14 and traded near $81,500 following the PPI report, down about 3.6% over 24 hours.
The Federal Reserve raised rates by 25 basis points in September, bringing the target range to 3.75% to 4.00%. New York Fed President John Williams suggested on October 13 that another hike could be appropriate before the end of 2026, though he did not identify an immediate need for further increases in 2027. Polymarket priced a roughly 75% probability of no change at the October meeting as of October 15, with the remaining 25% reflecting expectations of a quarter-point hike.
The next macro catalysts are the October 29 release of the first estimate of third-quarter U.S. GDP and September PCE data from the Bureau of Economic Analysis, followed by the Census Bureau's advance October retail sales report on November 17. Both releases will shape expectations for the Federal Reserve's December rate decision.
The inflation print was driven largely by a 9.1% surge in gasoline prices, which accounted for more than half of the 0.6% monthly headline increase, according to the BLS release. Core CPI, which excludes food and energy, rose 0.3% monthly and 2.6% annually, up from 2.4% in August, crypto.news reported. Producer prices added to the pressure the following day, with the Producer Price Index rising 1.3% in September and 6.3% year over year, the largest monthly increase since March 2022.
CoinShares described Bitcoin's current trading conditions as "difficult" but characterized the selling as part of a "data-driven range rather than a trend," suggesting the outflows may not signal a lasting directional shift. Bitcoin fell below $82,000 after the CPI release on October 14 and traded near $81,500 following the PPI report, down about 3.6% over 24 hours.
The Federal Reserve raised rates by 25 basis points in September, bringing the target range to 3.75% to 4.00%. New York Fed President John Williams suggested on October 13 that another hike could be appropriate before the end of 2026, though he did not identify an immediate need for further increases in 2027. Polymarket priced a roughly 75% probability of no change at the October meeting as of October 15, with the remaining 25% reflecting expectations of a quarter-point hike.
The next macro catalysts are the October 29 release of the first estimate of third-quarter U.S. GDP and September PCE data from the Bureau of Economic Analysis, followed by the Census Bureau's advance October retail sales report on November 17. Both releases will shape expectations for the Federal Reserve's December rate decision.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.