Bitcoin Price Analysis: BTC Nears $110,000 Ahead Of CPI Data
Bitcoin (BTC) has rallied during the ongoing session as it looks to reclaim $110,000. The flagship cryptocurrency is up over 2%, trading around $109,700.
Meanwhile, Bitcoin whales have flipped bearish on the asset, hours before President Trump is scheduled to make another announcement.
Bitcoin Miner Debt Surges
Bitcoin miner debt has reached staggering proportions, rising from $2.1 billion to $12.7 billion as they compete to meet demands for artificial intelligence (AI) and Bitcoin. Miners must continuously invest and upgrade their hardware infrastructure. Without investment in the latest hardware, a miner’s share in the global hashrate declines, leading to a lower share of the daily BTC quota. VanEck analysts Nathan Frankovitz and Matthew Sigel stated in their October Bitcoin ChainCheck report,
“We refer to this dynamic as the melting ice cube problem. Historically, miners relied on equity markets, not debt, to fund these steep Capex costs.”
Bitcoin miners have started diversifying their income streams by moving their energy capacity towards AI and HPC hosting services following the April 2024 halving. The latest halving cut miner rewards to 3.125 BTC, substantially impacting profitability.
Bitcoin Needs Something Crazy To Reach
Galaxy Digital CEO Mike Novogratz believes planets would almost need to align for Bitcoin to reach $250,000. The comments come after several prominent personalities doubled down on the flagship cryptocurrency reaching $250,000 by the end of the year. Novogratz stated during an interview,
“The end of the year is only two and a half months away. There would have to be a heck of a lot of crazy stuff to really get that kind of momentum.”
However, Novogratz believes Bitcoin should stay above $100,000, a key psychological level it broke through in December after Donald Trump’s victory in the US Presidential elections. The flagship cryptocurrency came close to retesting the $100,000 level after President Trump imposed 100% tariffs on Chinese imports.
“On the upside, you don’t really accelerate until you take out $125,000. So the most likely outlook is we’re ranging between 100 and 120 or 125, unless we take out the top side.”
Novogratz believes a potential trigger to push BTC beyond its all-time high could be if President Trump moves to influence the Federal Reserve, or if the crypto market structure bill, the CLARITY Act, passes this year.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is up over 2% during the ongoing session and has reclaimed the $110,000 level. The flagship cryptocurrency reached an intraday high of $114,082 on Tuesday before settling at $108,362. Selling pressure persisted on Wednesday as the price fell 0.72% to $107,585 before rebounding during the ongoing session.
The flagship cryptocurrency’s momentum took another hit on Wednesday as selling pressure reversed Monday’s gains. Traders will be watching the upcoming CPI report for cues on price action. The Consumer Price Index (CPI) report, delayed due to the ongoing government shutdown, is scheduled for October 24. An analyst noted on X,
“CPI data will be released this upcoming Friday. The consensus forecast is 3.1%. What concerns me is that CPI has been rising for the past six months, and we are once again above 3%, even as the Fed has already started lowering interest rates. If the data comes in above 3.1%, it could pose a significant problem. This makes Friday’s CPI release crucial to watch.”
The last three CPI releases have coincided with local tops, fueling fears that another rally could face a swift rejection.
Meanwhile, spot Bitcoin ETFs registered net outflows of $101 million on October 22, partially reversing the $477 million in net inflows seen a day prior. The total trading volume across Bitcoin ETFs also fell, dropping from $7.4 billion a day to $6.58 billion. BlackRock’s IBIT registered $73.6 million in inflows. However, Fidelity’s FBTC and Grayscale’s GBTC registered a combined $56 million in redemptions. Ark 21Shares (ARKB) and Bitwise (BITB) also registered noticeable outflows. The renewed outflows extend the underperformance of BTC-tracking funds in recent weeks as they struggle to gain momentum.
BTC plunged to $103,516 on Friday as selling pressure intensified. However, it recovered from this level to settle at $106,463, ultimately dropping 1.60%. BTC rose on Saturday, rising 0.70% to reclaim $107,000 and settle at $107,208. Buyers retained control on Sunday as the price rose over 1% to cross $108,000 and settle at $108,676. Bullish sentiment intensified on Monday as BTC’s recovery continued. As a result, the price rose nearly 2% to reclaim $110,000 and settle at $110,568.
Source: TradingView
BTC reached an intraday high of $114,082 on Tuesday. However, market sentiment soured and buyers lost momentum. As a result, the price fell 1.99% to $108,362. Sellers retained control on Wednesday as BTC fell 0.72% and settled at $107,585. The price has rallied during the ongoing session and is trading around $110,100.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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