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On Oct 13, the U.S. Bureau of Labor Statistics released US CPI data. As per data, the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent on a seasonally adjusted The cryptocurrency market witnessed a notable downturn on Tuesday, with a 1.51% decline spurred by the release of October’s Consumer Price Index (CPI). The ensuing Bitcoin and the broader crypto market bounced back immediately in hours following the release of the US CPI inflation data on Thursday. On Thursday, October 13, the The cryptocurrency market saw a notable downturn on Tuesday, falling 1.51%. The shift came after the release of the Consumer Price Index (CPI) for October. Bitcoin, which had previously Bloomberg questioned economists who predict that core CPI will increase to 6.5% over the course of the year from 6.3%. Nonetheless, it will moderate once again to 0.4% Bitcoin’s price surge above $105K puts it at a critical juncture, with CPI data set to determine its next move. If CPI shows cooling inflation, Bitcoin could rally toward new all Alternative cryptocurrencies such as Solana (SOL) and Polygon (MATIC) outperformed their counterparts, boasting impressive 7-day gains of 33% and 25%, respectively. These assets

CPI on October 13th: Another Cascade for the Crypto Markets? Here's What Happened.

On October 13th, all eyes in the crypto world were glued to the U.S. Bureau of Labor Statistics as they released the latest US CPI data. Did the Consumer Price Index (CPI) trigger another downturn for Bitcoin and other cryptocurrencies? The short answer: the initial reaction was a mixed bag of volatility, followed by a potential rebound.

As per data, the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent on a seasonally adjusted basis. The cryptocurrency market witnessed a notable downturn on Tuesday, with a 1.51% decline spurred by the release of October’s Consumer Price Index (CPI). This initial dip created immediate uncertainty.

The Immediate Reaction: Bitcoin and the Crypto Bounce Back

Following the release of the US CPI inflation data on Thursday, Bitcoin and the broader crypto market bounced back immediately in hours. On Thursday, October 13, the cryptocurrency market saw a notable downturn on Tuesday, falling 1.51%. The shift came after the release of the Consumer Price Index (CPI) for October. Bitcoin, which had previously shown resilience, experienced this initial dip. The market's quick recovery suggests a growing understanding of how CPI figures influence crypto valuations.

Beyond Bitcoin: Altcoins Show Strength

While Bitcoin remains the bellwether, alternative cryptocurrencies such as Solana (SOL) and Polygon (MATIC) outperformed their counterparts, boasting impressive 7-day gains of 33% and 25%, respectively. These assets demonstrate that specific blockchain projects and ecosystems can thrive, regardless of broader market sentiment driven by CPI or other macroeconomic indicators.

Looking Ahead: CPI's Continued Impact on Crypto

The long-term impact of October 13th's CPI data remains to be seen. Bloomberg questioned economists who predict that core CPI will increase to 6.5% over the course of the year from 6.3%. Nonetheless, it will moderate once again to 0.4%. Bitcoin’s price surge above $105K puts it at a critical juncture, with CPI data set to determine its next move. If CPI shows cooling inflation, Bitcoin could rally toward new all-time highs. However, persistent inflation worries could trigger further corrections. Investors should continue to monitor CPI releases and adapt their crypto strategies accordingly.

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