Bitcoin faces elevated CPI with BTC price tackling $26.8K focal point
Bitcoin (BTC) is clinging to the key $26,800 mark prior to the Oct. 12 Wall Street open as United States inflation data continued to beat expectations.
Data from Cointelegraph Markets Pro and TradingView showed BTC price volatility staying muted after two-week lows seen the day prior.
These had come thanks to U.S. macroeconomic data revealing persistent inflation continuing to take markets by surprise.
On the day, the September print of the Consumer Price Index (CPI) bolstered the trend, coming in at 3.7% year-on-year versus 3.6% expected. Less food and energy, the tally was 4.1% — matching forecasts.
“The all items index increased 3.7 percent for the 12 months ending September, the same increase as the 12 months ending in August,” an official press release from the U.S. Bureau of Labor Statistics confirmed.
Reacting, financial commentary resource The Kobeissi Letter nonetheless emphasized the tight spot in which monetary policy — and the Federal Reserve — now found itself.
“We have PCE and PPI inflation rising with CPI inflation above expectations,” it wrote on X.
The concept of “higher for longer” when it comes to U.S. interest rates is broadly expected to result in pressure for risk assets, including crypto.
Following CPI, the odds of the Fed hiking rates further at the next meeting of the Federal Open Market Committee (FOMC) on Nov. 1 were nonetheless minimal at just 7.4% per data from CME Group’s FedWatch Tool.
Turning to Bitcoin itself, already cautious market participants had little reason to expect a return to upside in the short term.
Related: BTC price rally in doubt? Bitcoin young supply echoes 2022 bear market
Popular trader Skew continued to flag $26,800 as the zone for bulls to flip to support.
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