How release of U.S. CPI data will affect Bitcoin, crypto market

Key Takeaways

How could the upcoming U.S. CPI report affect Bitcoin’s price?

 A softer CPI reading may boost Bitcoin above $112K, while a stronger one could push it toward $107K.

What factors are contributing to Bitcoin’s current volatility? 

Persistent inflation, U.S.-China trade tensions, and cautious post-Fed rally patterns are keeping market uncertainty high.

Bitcoin [BTC]  has been on a volatile path, recently dropping from a high of $124,500 to its press time price of $111,475.73, a 1.19% gain in the past 24 hours.

Investors are closely watching key U.S. economic events, including October’s Consumer Price Index (CPI) report and the upcoming Federal Reserve policy meeting, both of which could significantly impact Bitcoin’s direction.

CPI data and its impact on Bitcoin

Analysts note that a softer-than-expected CPI could give Bitcoin a bullish boost, potentially pushing it past $112K, while a stronger reading may pressure prices toward support near $107K.

Remarking on the same, Ted took to X (formerly Twitter) and noted, 

“The last 3 CPI data have resulted in a short-term correction for $BTC. The good thing is that Bitcoin has recovered in a few weeks, so I’ll be paying close attention to tomorrow’s CPI data.”

Providing further insights, another X user – Cipher added,

“US CPI data drops today at 8:30 AM ET – expectations sit at 3.1%. If the numbers come in lower – it could fuel a bullish reaction across Bitcoin and altcoins, as cooling inflation strengthens the case for easier monetary policy.”

Why is CPI data important?

Despite the ongoing government shutdown, the CPI report is still being released because it’s essential for the Social Security Administration. It helps to calculate 2026 cost-of-living adjustments for millions of retirees and benefit recipients.

Originally, the report was scheduled for the 15th of October, but was delayed due to the shutdown.

Expressing on the matter, Sarah House, a senior economist at Wells Fargo, said, 

“The government shutdown may have altered the September CPI release date, but it hasn’t changed the stubborn state of inflation.”

She further added,

“Beneath the surface, we expect goods inflation to stay elevated due to continued tariff pass-through, while an easing in primary shelter costs should help cool services inflation.”

What’s more?

This coincided with a recent analysis from AMBCrypto, which also showed that Bitcoin is facing a high-stakes environment.

The upcoming U.S. CPI release on the 24th of October and the FOMC meeting could significantly sway BTC’s direction.

Persistent inflation and ongoing U.S.-China trade tensions keep volatility elevated, even if the Fed opts for a rate cut.

Meanwhile, whales are positioning for potential bullish moves, with long positions and leverage accumulating.

However, historical patterns indicate that post-Fed rallies may struggle for sustained momentum, leaving Bitcoin’s push toward a new all-time high uncertain as November unfolds.