# U.S. Inflation and Nominal Retail Sales Weigh on Bitcoin (BTC) By Enna Lee Canonical URL: https://www.tokenpost.com/news/investing/33388 Published: 2026-10-16T17:41:13.000Z Updated: 2026-10-16T17:41:13.000Z Section: Investing > September CPI rose 3.7% from a year earlier, while retail sales excluding gasoline gained 0.2%. Digital asset investment products saw $434 million in outflows so far this week. Bitcoin (BTC) fell this week as firmer U.S. inflation and spending data prompted traders to reassess the Federal Reserve's rate path. Global digital asset investment products recorded $434 million in outflows as traders reassessed the Fed's rate path. The Consumer Price Index rose 0.6% in September from the prior month and 3.7% from a year earlier, above the 3.6% consensus. Core inflation, excluding food and energy, increased 0.3% monthly and 2.6% annually. Gasoline prices climbed 9.1%, accounting for around half of the monthly rise in the overall index. Retail sales increased 0.8% in September, after the August gain was revised to 1.3%. Gas station sales rose 6.4%. Excluding gasoline, retail sales grew 0.2%, compared with 1.0% in August. Because retail sales are measured in dollars, the increase can reflect higher prices as well as the number of goods sold. Some of September's nominal spending strength reflected energy costs rather than stronger real consumption. U.S. economic activity remained resilient, even as sales outside gasoline grew more slowly. For the Fed, the data left inflation firm while demand remained resilient enough to keep restrictive policy in view. Interest-rate futures moved more hawkishly after the CPI release, and expectations for another increase before year-end rose substantially. Markets nevertheless still do not expect a rate hike at the Fed's October meeting. Higher rate expectations can lift real yields, making Bitcoin, which generates no yield, less attractive relative to interest-bearing assets. Tighter financial conditions can also reduce liquidity across risk markets. Near-term pressure posed a challenge for Bitcoin, without marking a fundamental bearish turn. The outflows marked weaker investment-product flows since the CPI release. A [pre-CPI Bitcoin decline]() had already put the asset under pressure ahead of this week's inflation report. Higher energy bills could weigh on household purchasing power. If that squeeze continues, resilient spending could give way to softer demand later in the year. Cooler inflation or weaker economic activity could ease pressure on the rate outlook. ## Links in this article - [pre-CPI Bitcoin decline](https://www.tokenpost.com/news/investing/31080)