The latest CPI data shows U.S. inflation rose by 2.4% in September, slightly above expectations but continuing its cooling trend since 2021. This decline is leading to increased optimism for interest rate cuts, which could create a favorable scenario for Bitcoin and other cryptocurrencies. According to 21Shares, lower interest rates tend to drive more investment in riskier assets like crypto by reducing borrowing costs. This potential boost is crucial as Bitcoin has struggled recently, with its price dipping to $60,604. However, mixed economic data, including strong GDP growth and rising jobless claims, suggests that the market remains uncertain.
Analysts suggest a 25 basis point rate cut is highly probable in the coming months, which could help reverse Bitcoinâs current downward trend. Despite recent geopolitical tensions, experts believe this inflation data could set up a market recovery, benefiting not just Bitcoin but the broader cryptocurrency market. Investors should keep an eye on the Federal Reserveâs upcoming decisions in November, as they may play a critical role in shaping the next wave of crypto price movements.
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