US CPI Data and Other Macros to Watch This Week for Bitcoin and Altcoin Rally

As a seasoned crypto investor with a decade of experience under my belt, I can confidently say that this market is as unpredictable as ever. The recent surge in Bitcoin and altcoins, particularly during Asian trading hours, has given me a sense of deja vu – it’s like riding a roller coaster where the thrill never fades.


Following a subpar initial week of October, Bitcoin and various altcoins are experiencing a robust upswing during Asian trading hours on Monday, just prior to this week’s US CPI data release. Currently, Bitcoin (BTC) has risen by over 3%, pushing past the $63,500 mark earlier today. Meanwhile, Ethereum (ETH), among other altcoins, is also seeing gains ranging from 3% to as high as 8%.

On the previous Friday, robust U.S. employment figures diminished the anticipation for a 0.5 percentage point rate reduction at the November FOMC meeting. The US Consumer Price Index (CPI) report for September is set to be released this Thursday, October 10, serving as a significant gauge for market trends moving forward. This critical economic statistic will assist the Federal Reserve in navigating its course.

According to current predictions, the Consumer Price Index (CPI) might decrease to 0.1% in September, compared to the 0.2% in August. Moreover, inflation may remain approximately at 2.3%, a drop from the 2.5% recorded in the previous month. This anticipated decrease in inflation seems to be fueling optimism within the cryptocurrency market.

In contrast to expectations, the Core Consumer Price Index (CPI), which disregards fluctuating energy and food costs, is likely to show a moderated inflation rate of 0.2%, dropping from 0.3% in the previous month. However, on an annual basis, the Core CPI is predicted to maintain its level at 3.2%.

Over the coming week, several Federal Reserve representatives will discuss topics related to inflation and future trends. Previously, Federal Reserve Chair Jerome Powell expressed confidence that inflation in the U.S. might ease, while other officials have hinted at a potential larger reduction of 0.5% (50 basis points) in interest rates during the Fed’s meeting later this year.

Bitcoin and Altcoin Rally

To begin the week, Bitcoin and other cryptocurrencies are showing strength in anticipation of the upcoming US Consumer Price Index (CPI) report. Cryptocurrency enthusiasts have been on tenterhooks, hoping for an October resurgence – aka Uptober – while also looking forward to the start of the next bullish market surge.

Despite predictions suggesting otherwise, Bitcoin and other cryptocurrencies experienced a significant decline during the initial days of October. However, the price of Bitcoin has shown remarkable resilience, recovering forcefully from its low of $59,800 in the previous week. Some financial experts are optimistic that this recent rebound could lead to a 32% surge in Bitcoin’s price from the bottom and potentially new record highs in October.

BTC typically bottoms 3-4 days into October
Over the course of October, BTC has seen a 32% increase. If we exclude any Octobers with a negative return, this rise becomes approximately 36%.
We tagged 59.8K on Oct 3 after a sell off
If we return 30% on 59.8K, we will end the month at 77.7K
— jay (@0xjaypeg) October 6, 2024

The current rally in Bitcoin is crucial for other cryptocurrencies and the overall market to follow suit. Meanwhile, meme coins like PEPE, BONK, and WIF are already witnessing significant growth, with PEPE leading the charge at over 11% increase within a day. As of now, PEPE has a market cap of $4.29 billion, BONK stands at $1.56 billion, and WIF is at $2.61 billion, with 24-hour volumes of $2.56 billion, $437.41 million, and $1.26 billion respectively. These figures reflect a 8.9%, 9.2%, and 14.8% volatility respectively.

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2024-10-07 14:48