Bitcoin drops to $81,300 support as Fed hike odds climb to 55% amid $100 million crypto wipeout
What happened
Bitcoin’s price slipped under $83,000 on Oct. 14, 2026, after the September U.S. consumer price index showed hotter-than-expected inflation. The data revived expectations that the Federal Reserve will raise interest rates again in October, leading to a surge in crypto liquidations.
CoinGlass reported more than $100 million in leveraged positions were wiped out within an hour of the inflation report, pushing total 24‑hour liquidations above $220 million. The market now watches a key support level around $81,300.
Key numbers
- Bitcoin price fell below $83,000 and is testing $81,300 support.
- U.S. September CPI rose 3.7% annually, beating the 3.6% forecast.
- Core CPI increased 0.3% monthly (vs. 0.2% forecast) and 2.6% annually.
- Fed hike odds on Kalshi jumped from 21% to 55% for a 25‑basis‑point October increase.
- Over $100 million in crypto liquidations occurred in the hour after the report.
What the data shows
Confirmed inflation figures from the Bureau of Labor Statistics reveal a 0.6% monthly rise in headline consumer prices and a 0.3% rise in core prices, the latter exceeding expectations. Energy prices drove much of the increase, with gasoline up 9.1% and the broader energy index up 5.2%.
The report pushed the 10‑year Treasury yield higher by roughly 7‑9 basis points after an earlier decline, reflecting renewed bond‑market volatility.
Kalshi’s prediction market now shows a 55% chance of a Fed rate hike at the October meeting, up sharply from 21% earlier. The Fed last raised its benchmark rate to a 3.75‑4% target range in September – its first increase in more than three years.
Robin Brooks of the Brookings Institution warned that the inflation data could reignite instability in global bond markets after a period of calm.
Sygnum Bank strategist Can‑Luca Köymen said the stronger core reading has reopened the possibility of another October hike, though his bank still expects policymakers to keep rates steady. He noted that the Fed’s preferred personal consumption expenditures index will be released after the October policy decision, leaving officials to gauge inflation risk without the latest figure.
CryptoQuant data shows spot Bitcoin demand has begun to recover after two weak months, with total demand rising by about 69,000 BTC. Futures demand also grew, creating a market structure that historically supports price advances.
Analysts say higher Treasury yields increase the appeal of interest‑bearing assets and a stronger dollar can tighten financial conditions, both of which may affect demand for speculative assets like Bitcoin. The macro pressures appear to influence Bitcoin more than daily flows into spot exchange‑traded funds.
A spot exchange‑traded fund is a security that holds the actual asset, unlike futures‑based funds that track price movements without owning the underlying.
Why this matters for crypto investors
The inflation report and rising Fed hike odds directly impact crypto markets because higher interest rates make non‑yielding assets less attractive and can strengthen the dollar, both of which tend to pressure Bitcoin and other digital currencies. The surge in liquidations shows how quickly the market can react to macro news, highlighting the importance of monitoring economic indicators.
Bitcoin’s spot demand recovery, noted by CryptoQuant, suggests underlying buying interest remains despite macro headwinds. Investors will watch whether the $81,300 support holds as the next Fed decision approaches.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.