The US Consumer Price Index (CPI) report for September is due out today, which could cause a lot of volatility in the market. Forecasts suggest that the annual inflation rate could reach 3.1%, which would be the highest level since June 2024 if it comes true.
According to market analyst Ash Crypto, if inflation is reported above 3.1%, the likelihood of the Federal Reserve maintaining its current contractionary policies increases and may cause
Bitcoin to decline in the short term. In the second scenario, if the index falls exactly at 3.1%, the market reaction is likely to be neutral. In the third and most bullish scenario, if the consumer price index is released below 3.1%, the likelihood of increased liquidity and rapid growth in the cryptocurrency market increases.
According to Esh Crypto, a decline in inflation could be a green light for Bitcoin to continue its upward trend. Overall, today’s report could set the direction for the cryptocurrency market to move forward and, if inflation turns out to be lower than expected, could pave the way for a new rally in late October.
