Coinbase Institutional says Fed rate expectations, not the Binance hack, sank Bitcoin

Hotter inflation data and rising odds of a December rate hike did more damage to Bitcoin than last month's exchange breach, according to Coinbase Institutional Bitcoin ’s recent slide has an obvious suspect: the Binance hack. Coinbase Institutional says the evidence points somewhere else. According to Coinbase Institutional, shifting expectations for Federal Reserve interest rate policy, not the breach at the world’s best-known exchange, drove Bitcoin’s latest decline. The pivot point was the Consumer Price Index report released on November 10. Headline consumer prices climbed 0.4% month-over-month, while core CPI, which strips out volatile food and energy costs, rose 0.3%. Those numbers ran hot enough to reshape bets on what the Fed does next. Market pricing for a 25-basis-point rate increase in December climbed above 90% following the report.

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