Bitcoin Price, Altcoins Rally on US CPI Decline as Fed Rate Cut Likely
Bitcoin's price increased by 2.5%, reaching $111,500 due to lower-than-expected US CPI numbers for September.
- The decline in inflation raises the probability of a Federal Reserve rate cut next week to 99% according to CME Fed Watch tools.
- Altcoins like Ethereum, XRP, and Binance Coin gained over 3% each.
Bitcoin Price Target
- Bitcoin rebounded from $110,000 after US CPI data release.
- Analyst Ted Pillows suggests Bitcoin needs to reclaim $113,000-$114,000 to maintain upward potential.
- If the current rally is a false breakout, a market correction may follow.
The US Labor Department released a CPI report showing a 3.0% year-over-year increase, below the expected 3.1%. Core CPI also rose by 3.0%, indicating weaker inflation pressures.
- This sparked risk-on sentiment and an anticipated Federal Reserve rate cut next week.
- The S&P 500 index also showed strength, nearing record highs.
Altcoin Rally and Rate Cut Expectations
- The cooling inflation benefits altcoins, suggesting a shift towards quantitative easing.
- CME Fed watch tool indicates a 99% chance of a 25 bps rate cut on October 29.
- An insider whale opened $150 million in long positions ahead of Trump's speech, having a perfect track record in predicting Bitcoin and Ethereum movements.