Hot U.S. Inflation Hits Bitcoin | Kraken Parent Buys an EU Bank | Solana Sets Alpenglow Upgrade | Daily Crypto Roundup.

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Welcome back to the Daily Crypto Roundup. Inflation has just put the Federal Reserve back in charge of crypto. Bitcoin has fallen toward $81,700. Treasury yields have jumped, and traders are suddenly assigning much higher odds to another rate increase this month. But beneath the sell-off, Kraken's parent is buying a European bank, Solana has dated its fastest consensus upgrade, and the strangest trade of the day involves next-day S&P 500 options on a crypto network. At the time of recording, Bitcoin is approximately $81,750, down 2.1% over 24 hours after trading as high as $83,996.

Ethereum is near $2,422, down 3.8%.

XRP is $1.33, down 2.9%.

BNB is about $732, down 1.7%, and Solana is $103.74, down 3.5%.

Chainlink is the weakest of this group, down almost 4.9% near $12.36.

Bitcoin is not falling alone. Higher beta assets are losing more as traders reduce risk.

Tell us whether you are buying, waiting or reducing risk, and explain what would change your mind. This is not financial advice. Crypto trading involves risk of loss. New Kraken users who sign up using our link in the description can claim 20xRP from Crypto News Today. Availability and eligibility vary by region. The 20xRP is supplied by Crypto News Today, not Kraken. We are also getting more active on X, so follow Crypto News Today at Crypto News HQ. The lead is the United States Consumer Price Index for September. Headline inflation rose 0.6% during the month and 3.7% over the year. The monthly number matched the consensus, but the annual rate exceeded the 3.6% forecast and accelerated from 3.4% in August. Core inflation, excluding food and energy, rose 0.3% monthly and 2.6% annually. Both core readings were one-tenth of a percentage point above expectations. The details explain the reaction. Gasoline rose 9.1% and accounted for more than half of the monthly increase. Energy gained 5.2%.

But pressure was not confined to fuel. Shelter rose 0.4%, while recreation, used vehicles, education, airline fares, medical care and clothing also increased. An oil-driven spike is part of the story. But the Federal Reserve cannot easily ignore everything else. Bitcoin dropped roughly $1,000 immediately after the release and continued toward an intraday low near $81,658.

The 10-year United States Treasury yield jumped about 9 basis points to 5.31%, while the 2-year yield rose about 13 basis points to 4.92%.

Those moves matter because higher government bond yields raised the return available from comparatively low-risk assets and increased the discount rate applied to speculative investments. Crypto then has to compete harder for capital. Reuters reported that pricing for a rate increase at the Federal Reserve's October 27th and 28th meeting jumped to roughly 46% from 21.6% before the report. That is not a central bank forecast. Federal Reserve Vice Chair for Supervision, Michelle Bowman, separately said policy makers have time to wait and see. Inflation strengthened the case for another increase, but the decision is open.

Ryan Lee, Chief Analyst at BitGet Research, warned before the release that hotter inflation could trigger another round of liquidations, as yields and Federal Reserve expectations adjusted. The first half of that mechanism is visible. What we cannot yet prove is how much of today's decline came from forced futures selling, rather than ordinary investors cutting exposure. Do not confuse a plausible transmission mechanism with a complete explanation.

There is a counterweight. United States-spot Bitcoin exchange traded funds received about $175.7 million on Tuesday, led by Fidelity and BlackRock Products. That came before today's report and cannot tell us what fund investors are doing now. Wednesday's final flow report will show whether institutions bought the dip or joined it. For holders, the immediate line is $81,658, today's low at the time of recording. A sustained break below that level would show that the first buyers failed. Reclaiming $83,000 and then today's high near $84,000 while treasury yields retreat would weaken the bearish reading. Would you trust a Bitcoin rebound if price recovers, but the 10-year yield remains above 5.3%?

The second story is a major attempt to erase the border between a cryptocurrency platform and a bank. Payward, the parent company of Kraken, has agreed to acquire Lithuania's Saldo Bank for an undisclosed amount. Saldo is licensed by the European Central Bank, regulated by the Bank of Lithuania and operates across Lithuania, Finland, Sweden and Germany, with permission to operate in the Netherlands.

If regulators approve the transaction, Payward expects to offer European clients interest-bearing deposits, loans, cards and euro payments alongside crypto products. Co-Chief Executive Arjun Sethi said the goal is, one place to hold assets, move them freely and put them to work. The deal is expected to close in 2027, so nothing changes for a Kraken customer today. The price is undisclosed, approval is not guaranteed, and a banking license creates obligations as well as opportunities. Solana has now placed a date on Alpenglow, its largest consensus change since launch. The upgrade is scheduled for Epoch 1064, beginning on October 21st at approximately 1500 UTC.