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Crypto Surges as CPI Falls, Fed Rate Cut Odds at 99%

Crypto Surges as CPI Falls, Fed Rate Cut Odds at 99%
Crypto Surges as CPI Falls, Fed Rate Cut Odds at 99%

Key notes

  • Bitcoin price could rise to claim bullish liquidity at $114,000, however, failure to cross this level could lead to a sharper correction.
  • With headline and core CPI at 3.0%, below expectations of 3.1%, markets are anticipating a 25 basis point interest rate cut by the Fed next week.
  • Altcoins like Ethereum, XRP, and Binance Coin rose 3-5% after US inflation numbers came in lower than expected.

Bitcoin

Bitcoin
$112,740



24-hour fluctuations:
1.0%


Market value:
$2.25 T



Vol. 24 hours:
$24.49 billion

The price saw a sharp rise to $111,500 levels, extending its daily gains to 2.5% on the back of weaker-than-expected US CPI numbers for September.

With inflation clearly lower in the US, the chances of a Fed rate cut next week have risen to 99% according to data from CME’s Fed monitoring tools.


As a result, altcoins are seeing a rapid rise along with Ethereum

Ethereum
$4012



24-hour fluctuations:
1.7%


Market value:
$483.04 billion



Vol. 24 hours:
$14.14 billion

Ripple

XRP
$2.63



24-hour fluctuations:
2.8%


Market value:
$157.89 billion



Vol. 24 hours:
$3.25 billion

Binance coin

BNB Bank
$1131



24-hour fluctuations:
1.4%


Market value:
$157.38 billion



Vol. 24 hours:
$1.07 billion

With a profit of more than 3% for each.

Bitcoin price is looking to rise to $114,000 on weak inflation and US CPI data

Bitcoin price rebounded from the $110,000 support levels following the release of US CPI data.

Cryptocurrency analyst Ted Bellows said that Bitcoin (BTC) needs to reclaim the $113,000-$114,000 range to confirm further upside potential.

He also warned that if the current rally turns out to be another false breakout, the market could see a sharp correction in the near future.

The US Department of Labor released a “rare exception” Consumer Price Index (CPI) report amid the ongoing government shutdown, showing inflation slowed more than expected in September.

The headline CPI rose 3.0% year-on-year, slightly below expectations of 3.1%, while the core CPI, which excludes food and energy, also came in at 3.0%, below expectations of 3.1%.

Both the monthly and core CPI readings were weaker than expected, indicating a decline in inflationary pressures. This has once again sparked risk appetite sentiment and paved the way for another Fed rate cut next week.

Amid CPI inflation data, the US market is also showing strength with the S&P 500 rising nearly 1% to reach record levels and approaching around 6,800.

Altcoins rise as expectations of Fed rate cuts grow

The general cooling of inflation is good for altcoins, as the Fed can focus more towards quantitative easing. Data from Fed Monitor CME The tool shows a 99% chance of interest rates being cut by another 25 basis points next week on October 29.

However, it remains to be seen whether the bulls will be able to pull this off in order for the rally to continue. On-chain data shows that Trump’s insider whale opened $150 million in long positions ahead of former President Trump’s speech today.

The trader, who claims a 10/10 success rate, is said to have accurately predicted every major pump and dump in Bitcoin and Ethereum.

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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to provide accurate and timely information but should not be considered financial or investment advice. Since market conditions can change rapidly, we encourage you to verify the information yourself and consult with a professional before making any decisions based on this content.

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Bhushan is a fintech enthusiast and has a good knack for understanding financial markets. His interest in economics and finance draws his attention towards new emerging Blockchain technology and cryptocurrency markets. He is in a constant learning process and keeps himself motivated by sharing the knowledge gained. In his spare time, he reads erotic fiction and sometimes explores his culinary skills.

Bhushan Akolkar on X


The post Crypto Surges as CPI Falls, Fed Rate Cut Odds at 99% first appeared on Investorempires.com.

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