US Inflation Reaches 3.7% in September, Causing Drops in Bitcoin and Gold

US consumer prices rose 3.7% year-over-year in September, surpassing the 3.6% forecast. Core inflation also beat expectations at 2.6% against a 2.5% forecast, both measures rising from August's readings of 3.4% and 2.4% respectively. Following the release, Bitcoin dropped from about $83,860 to $82,731, and gold fell from $4,153 to $4,117 an ounce. The hotter inflation data increases the probability of another Federal Reserve rate hike, which would raise borrowing costs. The Fed raised its benchmark rate by a quarter point in September to a range of 3.75% to 4.00%, with the next meeting scheduled for October 27 and 28.