Bitcoin prices soared above $111,000 today after new U.S. inflation data showed consumer prices rising more slowly than expected, increasing expectations that the Federal Reserve will cut interest rates further this year.
The consumer price index (CPI) rose 0.3% month-on-month in September, lower than the 0.4% expected by economists, while the “core” CPI, which excludes food and energy, rose just 0.2%, also slower than expected.
On a year-on-year basis, headline and core inflation both registered 3.0%, slightly below expectations.
The announcement was delayed by 10 days due to the ongoing government shutdown, but was one of the few major economic reports released this month. The exception was made because the Social Security Administration has a legal obligation to publish annual cost-of-living adjustments.
The data reaffirmed market expectations that next week’s Federal Reserve meeting and the Federal Open Market Committee meeting in December will cut interest rates by 25 basis points, lowering policy rates to a range of 3.75% to 4.00%.
In polymarkets, next week’s 25 basis point rate cut would be 97%.
That said, White House press secretary Caroline Levitt praised Friday’s CPI report, which was lower than expected, but warned that the ongoing government shutdown could prevent the release of October inflation data next week.
All other economic reporting remains suspended due to the shutdown, which began October 1.
The announcement caused U.S. bond yields to fall and the dollar to weaken, while the Nasdaq 100 index rose nearly 1%. For Bitcoin, the softening CPI provided fresh fuel to the rally that started earlier in the week, sending the cryptocurrency higher in early Friday trading.
Bitcoin price this week
Bitcoin fell to around $107,000 earlier this week as VanEck and Standard Chartered analysts maintained their bullish outlook despite recent volatility.
Standard Chartered’s Jeffrey Kendrick predicted a brief dip below $100,000 soon amid U.S.-China tensions, but saw it as a last buying opportunity before a rebound toward $200,000 by year-end.
VanEck’s ChainCheck report describes October’s 18% correction as not a bear market but a liquidity-driven mid-cycle reset.
Analysts pointed to normalization of leverage, strengthening macro demand and increased institutional investor activity. VanEck said deleveraging has removed speculative excess and created opportunities for entry as Bitcoin’s role as an “anti-money printing” asset deepens.
Bitcoin’s current price is about 13% below its peak of about $126,000, which it reached in early October on October 6, 2025.
Source: https://bitcoinmagazine.com/markets/bitcoin-price-jumps-above-111000
