Bitcoin Traders Eye U.S. CPI Data for Potential Price Boost

• The U.S. Consumer Price Index (CPI) data this week could influence Bitcoin's price rise.
• Positive CPI results may lead to Bitcoin price increases.
• Bitcoin has dipped 2% to $62,570 after briefly touching $64,000 on Monday.
• CPI is projected to rise by just 0.1% in September, reflecting the smallest increase in three months.
• A lower CPI might signal room for rate cuts, benefiting risk assets like Bitcoin.
• Bitcoin is positioning itself for a potential rally in the closing months of this year.

Summary :
Bitcoin traders are closely watching the upcoming U.S. Consumer Price Index (CPI) data, as a positive reading could potentially drive the price of Bitcoin higher. The recent narrative of "Uptober" and strong nonfarm payroll numbers have already provided support for Bitcoin, keeping it around $60,000. However, Bitcoin has dipped slightly to $62,570 after briefly touching $64,000. The CPI is expected to rise by just 0.1% in September, indicating a slowdown in inflation. A higher CPI could lead to higher interest rates, which may pressure risk assets like Bitcoin. Conversely, a lower CPI could signal room for rate cuts, benefiting risk assets. The anticipation of the CPI data has already had an impact on Bitcoin, as it rebounded from its recent low and is now positioning itself for a potential rally. Positive CPI results have historically led to price increases for Bitcoin, while higher-than-expected inflation data could raise concerns about stricter monetary policy, potentially affecting Bitcoin's price.

Sources :

- Decrypt