BREAKING: US Inflation Data Just Dropped! Bullish or Bearish for Bitcoin (BTC)?

Inflation numbers hit the wire—markets brace for impact as Bitcoin stands at the crossroads.

The Fed's Favorite Metric Roils Markets

Fresh inflation data just landed like a financial grenade, sending traditional markets scrambling while crypto traders watch Bitcoin's every twitch. The Consumer Price Index print could make or break the current crypto rally.

Bitcoin's Inflation Hedge Narrative Tested

Remember when everyone called Bitcoin 'digital gold'? Today's numbers put that theory through the wringer. Rising inflation typically fuels crypto—unless it forces the Fed to get aggressive with rate hikes.

Traders Position for Volatility

Options markets pricing in major moves as institutional money waits on the sidelines. The inflation report either validates Bitcoin's store-of-value thesis or exposes it as just another risk asset—no middle ground.

Wall Street analysts already spinning narratives regardless of the actual data—because why let facts interfere with a good story? Bitcoin either rockets past resistance or crashes through support. Place your bets.

Weeks after it was expected to be released, the U.S. inflation report has finally emerged. Notably, this report was facilitated under unique circumstances, as some Department of Labor staff were deemed exceptions during the shutdown, allowing this single report to be issued. The data provided crucial insight into the financial landscape.

U.S. Inflation Report Details

Next Wednesday, the Federal Reserve is set to announce its new interest rate decision, with expectations pointing towards a 25 basis point cut. However, the 5% increase in oil prices due to sanctions on Russia exerts an upward pressure on inflation. Moreover, if the U.S. and China fail to reach an agreement by November 1 (the October 30 Trump-Xi meeting being the last chance), product prices are expected to rise further. The U.S. anticipates imposing a 155% tariff, which China is likely to counter. This reciprocal restriction on exports will amplify inflationary pressure.

Thus, it was crucial to confirm the tariffs’ impact on inflation as indicated by the end-of-month PCE figures. The announced numbers are as follows:

• Core CPI Monthly Announced: 0.2% (Expectation and Previous: 0.3%)
• Core CPI Announced: 3% (Expectation and Previous: 3.1%)
• CPI Monthly Announced: 0.3% (Expectation and Previous: 0.4%)
• CPI Announced: 3% (Expectation: 3.1%, Previous: 2.9%)

Impact on Crypto Markets

The inflation figures came in lower than expected, which bodes well for cryptocurrencies. PCE data was confirmed, and the forthcoming rate cut on Wednesday is now certain. Consequently, BTC is advancing toward $112,000.