Will BTC USD, XRP Crypto, and Ethereum Prices Surge Before the U.S. CPI Data News?

Not long ago, prices for Bitcoin and other cryptocurrencies experienced minimal influence from macroeconomic announcement in the United States. However, this is shifting, particularly as crypto assets gain institutional acceptance. Next week, Friday, October 24, trading market participants will keep a close eye on the United States CPI data.

Frustration arose following the delay of September’s NFP data earlier this month due to the ongoing government shutdown. The United States CPI data holds significant importance, and the postponement to October 24 gives traders just a few days to modify their investments before Jerome Powell and the Federal Reserve make decisions regarding interest rates at the month’s end.

In anticipation of this CPI update, Bitcoin and several of the top cryptocurrencies to invest in are still recovering from the price drop on October 10. Although BTC USDT prices have shown some recovery, Bitcoin is popular below $115,000, which is an immediate barrier level level.

(Source: Bitcoin USDT, TradingView)

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What to Anticipate from the U.S. CPI Data

The U.S. CPI data is significant and not just another macroeconomic report. Economists regard it as a crucial economic indicator for tracking variances in the prices of a selection of goods and services. The CPI figure serves as a primary inflation measure, and its fluctuations over time will influence broader economic policy and potentially sway investor actions, ultimately affecting crypto valuations.

The year-on-year (YoY) September headline CPI reading excluding food and energy is expected to hit +2.9%. This prediction corresponds with broader macroeconomic models, which suggest a cooling inflation trend, although costs for services and housing continue to keep readings above the +2% threshold. Additionally, on a monthly basis, core CPI is anticipated to increase by approximately +0.3%.

(Source: ForexFactory)

The outcome of September’s CPI report will influence the Federal Reserve’s monetary policy, particularly concerning interest rate adjustments. The central bank relies on data and closely tracks both inflation metrics and the employment landscape.

If the CPI indicates a cooling inflation rate and the September data falls below expectations, the Federal Reserve may lower rates and inject market fluidity into the economy. Such conditions would be advantageous not only for BTC, viewed as digital gold, but also for altcoins, including top Solana meme coins.

On the other hand, if the CPI comes out hotter than expected, the Fed may contemplate pausing rate hikes and postponing rate cuts until December 2025.

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How Will BTC and Altcoins Respond? Will BTC USDT Surpass $115,000?

Currently, Bitcoin, ETH, and several of the best cryptocurrencies to acquire are fluctuating within narrow ranges.

BTC USDT remains constrained beneath $115,000, whereas ETH USDT is trading above $4,000 but faces selling pressure. At the same time, the Solana price is resting around the $200 mark, with XRP crypto unable to reclaim the $3 threshold.

Should the YoY CPI figure for September be reported lower than anticipated, the central bank would possess a solid rationale for reducing rates. This action would favor both Bitcoin and altcoins, channeling more investment into crypto and potentially elevating prices past established barrier level points.

On X, one analyst observed that in the previous three CPI data announcements, Bitcoin and thereby altcoins rose prior to the release but then dropped immediately afterward once the data became available.

(Source: TedPillows, X)

If this pattern persists, XRP crypto, the price of BTC, and ETH USDT are likely to breach critical liquidation levels and recover from the losses sustained on October 10.

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