Analysts predict a rally as Bitcoin options traders target $120K.
In a major crypto news today, the headline CPI inflation in the United States comes in lower than expected at 3%, but accelerated from 2.9% in August.
Bitcoin (BTC USD) price jumped from $110.6K to $111.7K in a few hours. Crypto traders’ sentiment climbed regarding the FOMC to continue interest rate cuts.
Moreover, the CME FedWatch tool showed the probability of another 25 bps Fed rate cut in October.
Recently, U.S. Federal Reserve Chair Jerome Powell also hinted at more rate cuts as the labor market cools amid a lack of economic reports due to the government shutdown.
On October 24, the U.S. Bureau of Labor Statistics (BLS) released the September Consumer Price Index (CPI) inflation data.
The BLS confirmed no other economic reports will be released, making the CPI print crucial for clues on Fed rate cuts.
The headline US CPI inflation comes in at 0.3% month-over-month (MoM), below expectations of 0.4%.
The headline CPI inflation cools to 3%, after 2.9% in August, marking the highest level since January 2025.
Whereas the Core CPI, excluding the food and energy prices, slowed to 0.2%, against 0.3% expected. Also, the annual core CPI cooled to 3%, lower than the 3.1% estimate by economists.
In recent crypto news, Wall Street giants such as JPMorgan, Bank of America, Moody’s and Goldman Sachs estimated below 0.30% CPI print, holding the 12-month rate steady at 3.1%.
Barclays, Nomura, Citadel Securities, and Morgan Stanley gave the highest estimate of above 0.32%.
Moreover, the median of 18 forecasts estimated a 0.30% rise in the core CPI, leaving the annual core CPI at 3.1%. Barclays and Citigroup forecast monthly core CPI rising to 0.43% and 0.49%.
At the time of writing, the US dollar index (DXY) showed volatility and slipped below 99, after rising above the level for over a week.
Also, the 10-year US Treasury yield slipped lower at around 3.978%, the level last seen in April after the key US CPI economic data release.
Bitcoin (BTC USD) price jumped as the CPI inflation data came in lower than expected. The price was trading near $111,541, with a 24-hour low and high of $108,802 and $111,513, respectively.
However, the trading volume remains low, down 28% over the last 24 hours, indicating uncertainty among spot traders.
In recent crypto news, Matrixport predicted Bitcoin price action to remain range-bound until confidence builds again.
Technical and structural indicators signal short-term weariness despite macro support, Fed rate cut, and stable liquidity conditions.
The crypto market shifted from a bullish to a consolidation phase as Bitcoin (BTC USD) remained below the 21-week moving average. This is considered a reliable boundary wall between bear and bull phases historically.
Analyst Ted Pillows pointed out that Bitcoin (BTC USD) held above the $110,000 support level. He predicted a reclaim of the $113,000-$114,000 level for more upside.
Bitcoin options traders were placing call bets for $120K. Popular analyst Michael van de Poppe noted that CPI is lower than expected. He predicted a new all-time high for Bitcoin price in the next 30 days.
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