Bitcoin and Ethereum Rise as Delayed Report Shows Inflation Cooled in September

💡 DMK Insight

Bitcoin’s 2% rise is more than just a number; it’s a reaction to cooling inflation, which could shift Fed policy. With U.S. inflation at 3% in September, slightly below expectations, traders are recalibrating their positions ahead of the upcoming Fed meeting. A lower inflation rate might ease pressure on the Fed to raise interest rates, which historically supports risk assets like Bitcoin. If the Fed signals a more dovish stance, we could see further bullish momentum in crypto markets. Watch for Bitcoin to test resistance levels around recent highs, as a sustained breakout could attract more institutional interest. But here’s the flip side: if the Fed remains hawkish despite this data, we could see a quick reversal. Traders should keep an eye on the 3% inflation mark as a key level; any surprises in upcoming economic data could lead to volatility. Also, monitor the broader market sentiment, as correlated assets like Ethereum may react similarly to Bitcoin’s movements.