Bitcoin (BTC) Price Reacts to Higher-Than-Expected US CPI Numbers for September

The Consumer Price Index numbers for September were higher than expected, signaling that inflation in the US is on the rise. This caused Bitcoin's price to drop because traders are worried that the Fed might not cut rates in November.

The cryptocurrency market has seen better days over the past seven, with the bears attempting to drag prices to lower levels. However, the buyers maintained their presence and managed to keep the market from crashing.

As of writing, the total market cap is around $2.17 trillion, which is more or less where it was this time last week. Starting with Bitcoin, its price is currently hovering at slightly more than $62,000 – this is pretty much where it was trading last week. In fact, the cryptocurrency charts a marginal increase of 0.5%.

But this is far from showing the full picture. Toward the middle of the week, BTC bulls attempted to break above $64,000, but the sellers were not having it. Less than two days later, on Thursday, BTC tumbled below $59,000, triggering a considerable number of liquidations in the derivatives market. In fact, more than $250 million worth of leveraged positions were wiped off, the majority of which were long.

Hopefully, the bulls were able to recoup and were quick to push the price back above $60,000 and, ultimately, above $62,000 where it’s currently found.

The situation is more or less similar throughout the rest of the market, and altcoins are also charting small gains in the range between 0.5% and 2%. In fact, BNB is this week’s best performer (from the top 10), increasing by 3%.

The market turbulence was perhaps caused by the recently released CPI numbers. The Bureau of Labor Statistics in the US releases the numbers for the Consumer Price Index once a month, and they are usually used to gauge inflation in the country. This time, they came in higher than experts were expecting. Traders interpreted the information as a reduced probability of another interest rate cut in November, which is considered to be bad for risk-on assets such as Bitcoin.

In what seems to be perceived as a bullish announcement, Mt. Gox has pushed the repayment deadline for 2025, which means that the potential of selling pressure over the market is delayed.

In any case, it’s interesting to see if the expected positivity in October will come through, or if Q4 will be off to a bad start.

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