Bitcoin drops below $59K as Fed might pause rate cuts in November

Key Takeaways

• Bitcoin's price fell below $59K after Fed's rate cut pause hint.
• US inflation rose slightly above expectations in September.

Bitcoin’s price fell below $59,000 on Thursday, slipping 4% in the past 24 hours, following remarks from Raphael Bostic, Atlanta Fed President, suggesting a potential pause in November rate cuts.

Atlanta Fed President Raphael Bostic said the central bank might hold off on cutting interest rates next month, depending on how economic data unfolds.

 “I am totally comfortable with skipping a meeting if the data suggests that’s appropriate,” Bostic stated in an interview earlier today.

His comments come after the Labor Department reported a slightly higher-than-expected Consumer Price Index (CPI) inflation rate for September.

Bostic, while acknowledging recent choppiness in economic indicators, said:

“This choppiness to me is along the lines of maybe we should take a pause in November. I’m definitely open to that.”

He added that the Fed has the ability to “be patient and wait” to see how the data evolves.

The US inflation rate increased by 0.2% in September, slightly above the 0.1% expectation. This uptick, combined with a rise in weekly jobless claims, added to market volatility. However, Bostic remained open to the idea of resuming cuts later in the year.

“It’s a journey to get to neutral…whether you move 25 basis points here or there, I don’t think those are as consequential,” he said.