All eyes this week are on the Bureau of Labor Statistics' September Consumer Price Index (CPI) report, scheduled for release on Thursday, October 10. Economists are forecasting headline inflation to rise 0.1%, while core CPI, which excludes food and energy costs, is expected to rise 0.2%.
On a year-over-year basis, core CPI is expected to decline to 2.3%, while core inflation is expected to remain at 3.2%. If the results beat expectations, Bitcoin could face downward pressure as rising inflation could limit the Federal Reserve's ability to cut interest rates.
The Bureau will also release the core producer price index (PPI), which tracks wholesale inflation. A rise in the PPI could indicate rising input costs, which could impact cryptocurrency mining and processing operations.
Another critical factor is the initial jobless claims report, which follows stronger-than-expected employment data in September. Strong employment data could further reduce the likelihood of an interest rate cut, which would impact crypto markets. Finally, third-quarter earnings reports from leading financial institutions are also expected this week, which could impact overall market sentiment.