Featured News Headlines
Crypto Markets Await U.S. CPI Data as Inflation Expected to Top 3% for the First Time in 2025
Crypto investors are on high alert ahead of the delayed U.S. inflation report for September, which could mark the first time this year that headline inflation climbs above 3%, potentially reshaping market sentiment.
Inflation Data Faces Shutdown Delay
The U.S. Bureau of Labor Statistics (BLS) is set to release the Consumer Price Index (CPI) for September on Friday, following delays caused by the 24-day government shutdown. Economists forecast a 0.4% monthly increase and 3.1% annual rise, according to Trading Economics—figures that would represent the highest inflation rate of 2025 so far.
CPI Could Influence Fed and Crypto Markets
Market watchers say the CPI print could have a ripple effect across both traditional and crypto markets. Investor Ted Pillows noted that if inflation comes in at 3.1% or higher, expectations for Federal Reserve rate cuts could weaken. Conversely, a reading at or below 3% could lift sentiment across risk-on assets, including cryptocurrencies.
Prominent analyst “Ash Crypto” echoed that view, describing a figure above 3.1% as bearish since it would mark the strongest CPI print since June 2024. A softer reading, however, could bolster hopes for liquidity inflows into digital assets.
While the Federal Reserve has recently emphasized its focus on the labor market, experts warn that any CPI surprise could still sway monetary policy sentiment. “It will still have a big impact on the markets if it’s out of line with consensus,” said Matt Maley, chief market strategist at Miller Tabak, in comments to Bloomberg.
Despite the inflation uncertainty, Barron’s reported that a rate cut next week remains highly likely, with futures markets pricing in a 98.3% probability.
Crypto Market Inches Higher
The global crypto market capitalization has edged up 1.8% in the past 24 hours to $3.8 trillion. Bitcoin (BTC) briefly surged past $111,000 on Thursday before settling around $110,500, leading the broader market’s cautious advance ahead of Friday’s pivotal CPI release.
