Trading in %Bitcoin (CRYPTO: $BTC) has been volatile over the past 24 hours following a hotter-than-expected inflation report in the U.S.
The price of Bitcoin fell 4% to below $59,000 U.S. immediately after the U.S. inflation data was made public but has since rebounded to trade above $61,000 U.S.
The big price moves in Bitcoin, and other cryptocurrencies, come after the U.S. Consumer Price Index (CPI) showed a re-acceleration of inflation in September.
The strong September inflation data has thrown into doubt the U.S. Federal Reserve’s next move on interest rates.
Futures markets are now betting that the American central bank lowers interest rates 25-basis points at its next policy meeting in November, down from earlier bets on a 50-basis point cut.
Cryptocurrencies also continue to be pressured by U.S. government regulatory actions against the sector.
The U.S. Securities and Exchange Commission (SEC) has launched a lawsuit against major digital asset market maker Cumberland DRW, news that pushed crypto prices lower.
The SEC lawsuit was one of several regulatory actions against crypto over the past week. On Oct. 9, the U.S. Department of Justice charged four crypto market makers with market manipulation.
Analysts say the U.S. government is getting more aggressive when it comes to cracking down on the market for digital coins and tokens.
Bitcoin’s price has risen more than 40% this year and currently trades at $61,200 U.S.