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Bitcoin Price Outlook Ahead of Consumer Price Index Release

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- Bitcoin Traders Focus Ahead of U.S. CPI Release - Uptober Narrative and Easing Inflation Expectations [Unblock Media] Bitcoin traders are closely watching the movements ahead of the U.S. Consumer Price Index (CPI) data release. According to digital asset firm QCP Capital, the Uptober narrative, along with strong non-farm employment data, is helping maintain Bitcoin's support level around $60,000. Uptober is a term used in the cryptocurrency community to describe the tendency for Bitcoin prices to rise in October, reflecting market expectations based on past patterns where Bitcoin prices increased during the month. Data from CoinGecko shows that Bitcoin briefly hit $64,000 on Monday before falling 2%, currently trading at $62,570. This is interpreted as traders adjusting while waiting for the CPI data release. The September CPI is expected to rise by 0.1% month-on-month, the smallest increase in the past three months, indicating a slowdown in inflation. If the CPI slows down, it could reduce pressure on the Federal Reserve to raise interest rates, positively affecting economic activity and investment sentiment. Annually, the CPI is expected to rise by 2.3%, marking the sixth consecutive slowdown and the lowest level since early 2021. QCP stated, "All eyes are on the U.S. CPI," adding that "the market will be watching for signs of rising inflation in this release along with recent strong U.S. wage and job data." The CPI plays an important role in the Federal Reserve's inflation assessment and, if it rises, could lead to interest rate increases to curb spending, pressuring risky assets like Bitcoin. Conversely, a low CPI allows room for interest rate cuts, promoting speculative investment in risky assets and potentially having a positive impact. Blockchain expert Andy Lian, in an interview with Decrypt, mentioned that expectations around the CPI data have already impacted Bitcoin. It looks like Bitcoin is preparing for a potential rally, bouncing back from the $60,000 low. Lian, an active cryptocurrency and blockchain expert in the Asian market, highlighted that investors respond sensitively to economic indicators, which play a crucial role in Bitcoin's price information. "In the past, Bitcoin has shown volatility in response to CPI data. Positive CPI results reflecting a strong economic environment have led to price increases," said Lian. However, he added that higher than expected inflation data could raise concerns about stricter monetary policy, negatively impacting Bitcoin prices. Based on this analysis, the release of the CPI data is expected to play a crucial role in Bitcoin's short- and mid-term price fluctuations. The combination of the Uptober narrative and CPI expectations will significantly impact Bitcoin's current and future price movements.

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2024-10-09 09:16
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