Huo Xing Finance reports: On October 15, the U.S. September CPI exceeded market expectations, once again challenging the assessment that inflation is easing. The overall CPI rose 0.6% month-over-month and 3.7% year-over-year; gasoline prices surged 9.1% in a single month, accounting for more than half of the overall increase. More notably, core CPI rose 0.3% month-over-month for the second consecutive month, with the year-over-year growth rate climbing to 2.6%. Prices for housing, airfare, and healthcare services remain resilient. This indicates that while inflationary pressures are being driven by energy prices, they are not confined solely to the energy sector, strengthening the Fed’s rationale for maintaining a tight monetary policy in the near term. Market expectations for an October rate hike briefly rebounded to nearly 50%. Changes in interest rate expectations rapidly transmitted to risk assets. In Asian markets, South Korea’s KOSPI plunged nearly 8% intraday, with Samsung Electronics and SK Hynix falling in tandem, signaling that investors are not only concerned about rising funding costs but are also reassessing the returns on AI infrastructure investments and semiconductor valuations. As higher interest rates compress valuation multiples, capital allocations concentrated among a few AI-focused firms become more susceptible to reallocation. The crypto market reacted even more directly. Over the past 24 hours, approximately $948 million in total liquidations occurred across the market, including $873 million in long positions and $74.94 million in short positions—longs accounting for over 90% of all liquidations—indicating that price declines triggered significant leveraged unwinding. The BTC liquidation heatmap shows dense liquidation liquidity clusters between $82,800 and $83,500, with additional concentration between $84,000 and $85,000; below, around $80,000, lies a key short-term support level. Moving forward, market focus will shift from this single CPI reading to whether inflation is persistent and whether the Fed will respond further due to energy price pressures. If U.S. Treasury yields and the dollar continue to strengthen, the crypto market may face pressure even without new negative catalysts, due to leveraged position contraction. If interest rate expectations cool again, further observation will be needed to determine whether BTC can reclaim the dense liquidation zone above and whether any rebound is accompanied by healthier positioning structures.
U.S. CPI Exceeds Expectations, Crypto Market Faces Leverage Pressure
MarsBitShare
Summary
The U.S. CPI data released on October 15 showed a 0.6% monthly increase, surpassing expectations and pushing the annual rate to 3.7%. Core CPI rose 0.3% for the second consecutive month, driven by services such as housing and healthcare. The data strengthened expectations of a potential October rate hike, with the probability now nearing 50%. The crypto market absorbed the brunt of leverage trading pressure, recording $948 million in liquidations within 24 hours, primarily long positions. BTC long liquidations clustered between $82,800 and $83,500, with $80,000 serving as a key support level. As investors evaluate value investing in crypto amid shifting rate expectations, attention now turns to whether inflation will persist and how the Fed will respond.
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