Bitcoin Price Analysis: BTC Rises As CPI Data Shows Cooling Inflation

Bitcoin (BTC) has steadily climbed above $111,000 as the delayed Consumer Price Index (CPI) report showed inflation cooling to 3% in September, slightly below the predicted 3.1% forecast, boosting crypto market sentiment. 

The Consumer Price Index report was delayed by the ongoing government shutdown, which has also delayed crucial economic data. 

Bitcoin To Reach $180,000: VanEck CEO 

VanEck CEO Jan Van Eck believes Bitcoin’s growing correlation with global M2 liquidity could propel it beyond $180,000 before the end of the bull cycle. VanEck revealed in its mid-October report that Bitcoin’s price had long moved with the global money supply. Bitcoin has exhibited a roughly 0.5 correlation with total global M2 growth, indicating that changes in fiat currency liquidity have explained a meaningful portion of long-term returns. 

“While this relationship tends to weaken during short-lived shocks, such as COVID in 2020, the 2024 election, or the ‘Tariff Tantrum’ of 2025, broader trends in monetary expansion continue to dominate Bitcoin’s cycles.”

Nathan Frankovitz, investment analyst at VanEck, stated that global liquidity across the top five currencies has doubled from $50 trillion to almost $100 trillion, during which Bitcoin prices have increased over 700x. Bitcoin currently makes up 2% of the global money supply. VanEck believes owning less than 2% of Bitcoin or any other digital asset implicitly addresses a short position in the asset class. 

As a result, VanEck reaffirmed its $180,000 year-end target for the flagship cryptocurrency despite recent price weakness and volatility. According to the asset manager, the futures market will play a crucial role in determining whether Bitcoin can reach its $180,000 price target. 

Delayed CPI Data Reveals Cooling Inflation 

Bitcoin (BTC) registered a notable increase on Friday after the US Consumer Price Index (CPI) rose 3% year-over-year, slightly below the forecast 3.1%. The report provided key inflation data during the ongoing government shutdown. The flagship cryptocurrency pushed to an intraday high of $112,158 ahead of the print before settling at $111,042. According to analysts, the CPI report cleared a vital policy overhang despite structural risks. Nic Puckrin, co-founder of The Coin Bureau, called the report “the most impactful inflation report of the year,” adding that it reduced the uncertainty created by the government shutdown. 

“This report finally dispels some of this uncertainty. It sets the stage for the FOMC to continue its rate-cutting cycle beyond next week, and this is what risk assets have been waiting for to resume their rally.”

Puckrin added that a move past $116,000 could propel Bitcoin to a new all-time high. 

“As we head into the weekend and liquidity thins, we could see a pronounced move higher as investors rotate from gold into bitcoin, provided no negative headlines surface.”

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) registered a sharp increase on Friday following the CPI data release. The flagship cryptocurrency has traded in positive territory since Thursday, rising over 2% to reclaim $110,000 and settle at $110,116. Buyers retained control on Friday as the price continued rising and settled at $111,042. BTC is up 0.56% during the ongoing session, trading around $111,650. 

According to the Bureau of Labor Statistics, the Consumer Price Index rose 3% over the past 12 months. Economists had predicted a 3.1% annual increase for the CPI numbers. The report marked the third straight month during which inflation grew hotter after cooling to 2.3% in April. Core inflation, which removes volatile food and energy prices, softened to 3% against 3.1% a month prior. 

The report comes as the government shutdown enters its 24th day. The shutdown delayed the report by over a week. However, the Federal Reserve still has time to digest the numbers before the next policy meeting. Analysts expect the Federal Reserve to cut interest rates by 25 bps. The Fed has been cautious in lowering borrowing costs this year amid fears that trade tensions and a shift in immigration policies under President Trump could make its 2% inflation target difficult to achieve. 

BTC rose nearly 4% on Sunday to reclaim $115,000 and settle at $115,067. The price faced selling pressure and volatility on Monday, ultimately registering a marginal increase and settling at $115,274. Selling pressure returned on Tuesday as BTC fell to an intraday low of $109,945. It recovered from this level to reclaim $113,000 and settle at $113,068, ultimately dropping 1.91%. Sellers retained control on Wednesday as the price fell 2% to $110,804. Bearish sentiment persisted on Thursday as BTC fell below $110,000 and settled at $108,198. 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%.

Source: TradingView

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. 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. Despite the selling pressure, the price recovered on Thursday, rising over 2% to reclaim $110,000 and settle at $110,116. Buyers retained control on Friday as BTC rose 0.84% to reclaim $111,000 and settle at $111,042. The flagship cryptocurrency is up 0.40% during the ongoing session, trading around $111,511.

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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