Traders Boost Bets on October Fed Hike After Hot US Inflation Data

The repricing matters less for the size of the hike than for the signal: a hot core print has revived the idea that policy easing is not the base case, which is the macro variable crypto and RWA markets have been trading against. The read-through is a firmer dollar and higher real yields, the usual headwind for risk assets, though the item gives no detail on how crypto specifically reacted. Whether traders' renewed hike bets survive the next data release, or fade as they have before, is the open question.