The latest data showed that the US CPI inflation comes in at 2.6%, a surge from 2.4% noted in September, sparking discussions in the crypto market. Notably, the market participants were also anticipating the inflation figures to come in hotter, which has so far kept the investors on the sideline today. This robust figure has also sparked concerns over the Fed’s potential move with their monetary policy plans ahead.
Besides, it also triggered discussions over its potential impact on Bitcoin and the altcoin prices.
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US CPI Comes In At 2.6%
According to the latest Labor Department report, the US CPI inflation comes in at 0.2% in October, unchanged from the previous month’s figure. However, on a year-over-year basis, the inflation figure came in at 2.6%, a surge from the 2.4% figure noted in the prior month. This YoY surge marks the first increase in the last eight months, sparking market concerns.
Simultaneously, the Core CPI, which excludes the food and energy prices, was at 0.3% in October, unchanged from the prior month’s reading and in line with the market expectations. In addition, the Core CPI on a YoY basis also remained unchanged at 3.3%.
These hotter-than-expected CPI inflation figures have sparked concerns over the US Fed’s next move with their monetary policy plans. As the figures are closely monitored by the central bank, it is expected that this figure would pave the way for a potential hawkish path by the Fed ahead. Besides, it can also weigh on the investors’ sentiment, which in turn could impact the Bitcoin and altcoins prices.
What’s Next For Bitcoin and Altcoins?
The Bitcoin price has noted a strong rally from last week, reaching nearly $90k to its ATH after Donald Trump’s win. On the other hand, the top altcoins also noted a strong rally following Bitcoin. However, the rally seems to have muted today, as investors awaited the US CPI inflation figures.
Now, with the hotter-than-anticipated US inflation figures, many are seeking clarity on its potential impact on crypto prices. Notably, the hotter-than-anticipated CPI inflation figures have sparked concerns over the Fed’s hawkish move ahead with their rate hike plans. Despite that, the crypto market remained strong.
According to the CME FedWatch Tool, there is a 58.7% chance of another 25 bps point cut by the Fed at their December gathering. Previously, the percentage was up at 63% before the release. The US Dollar Index fell 0.27% to $105.672, while the US 10-year Bond Yield slumped 0.88% to 4.397.
CME FedWatch Tool Fed Rate Cut US CPI
Source: CME FedWatch Tool
However, despite that, the investors appear to be shifting their focus again towards the crypto market. BTC price today rose nearly 4% to $88,884 during writing, with Bitcoin Futures Open Interest rose 2%. On the other hand, Ethereum also erased some of its recent losses and exchanged hands at $3,205.
Despite the bullish sentiment, CryptoQuant founder Ki Young Ju sounded the alarm on the overleveraged BTC-USDT perpetual market, citing a 2.7x increase from early this year and an all-time high. Urging caution, Ju emphasized that while Bitcoin price potential remains uncertain, the impending leverage unwind will bring significant pain.
Despite short-term concerns, Ju reaffirmed his long-term bullish stance on Bitcoin. This long-term bullish forecast also aligns with market experts like Peter Brandt, who expects a BTC’s run towards the north ahead.
