Bitcoin slipped below $74,000 on Tuesday as Federal Reserve Governor Christopher Waller explicitly backed a rate hike at the central bank’s December meeting, regardless of softer inflation data expected later in the day.

According to reporting by CoinTelegraph, Bitcoin traded at $74,080 on Bitstamp, down 1.3% as of market open. The move came in lockstep with broader risk-asset selling, with Nasdaq 100 futures falling 0.4%.

Fed Signals December Hike Regardless of CPI Outcome

Waller’s speech at the Bank of England Watchers Conference in London marked a decisive statement on monetary policy direction. He said he would “still support” a 25 basis-point rate increase at the Federal Open Market Committee’s December 9 meeting, even if October’s Consumer Price Index reading came in below expectations.

“While I am hoping for an improvement over September, even if this occurs, I would still support a 25 basis point increase in the FOMC’s policy rate at our December meeting,” Waller said. He added a caveat: if inflation surprised substantially to the upside, the Fed might need to take “more robust action.”

The statement caught markets off guard. CME Group’s FedWatch Tool showed December rate-hike odds jumping from 76.3% to 96.3% immediately after his remarks.

Inflation Data on Deck

October’s CPI release was due at 8:30 a.m. Eastern time on Tuesday morning. Economists expected a month-on-month gain of 0.3%, a significant slowdown from September’s 0.6% print, which had been inflated by energy costs.

Natixis CIB Americas chief US economist Christopher Hodge attributed the anticipated decline to falling fuel and shelter prices. “The slowdown in core CPI will stem from a reversion of shelter prices, primarily owners’ equivalent rents and lodging away from home. Similarly, the stabilization in diesel prices should help to quell price pressures in energy-intensive goods,” he told CNBC.

Despite the softer headline CPI outlook, Waller zeroed in on the Personal Consumption Expenditures index—the Fed’s preferred inflation measure. September’s PCE data had been troubling: up 0.5% month-on-month and 3.7% year-on-year. “September’s inflation data were bad. There was no silver lining,” he said.

Why Bitcoin Struggles With Rate Hikes

The Fed’s tightening trajectory poses a structural headwind for Bitcoin and other risk assets. Higher interest rates increase the opportunity cost of holding non-yielding assets, reduce speculative leverage capacity, and dampen liquidity flowing into crypto markets.

Bitcoin had climbed sharply in recent weeks on expectations that the Fed would pause or cut rates in 2025. Waller’s hawkish pivot—treating December’s rate decision as essentially fait accompli—undercut that narrative. The December hike, if executed, would mark a potential end to the easing cycle that markets had priced in following three consecutive rate cuts earlier this fall.

The Bureau of Labor Statistics noted that Tuesday’s CPI release would include only month-on-month figures due to data availability constraints from the 2025 government shutdown. October 2025’s year-over-year comparison was unavailable for the same reason.