BREAKING! US Inflation Data Released! Here’s Bitcoin’s (BTC) Initial Reaction!

Bitcoin, the leading cryptocurrency, started the new week lower ahead of the release of important economic data from the US and is currently trading around the $74,000 level.

At this point, global financial markets are focused on the US Consumer Price Index (CPI) data to be released today, with the October inflation figures expected to be decisive for Bitcoin and overall risk appetite. The data is also closely watched in terms of expectations regarding the Federal Reserve’s interest rate policy in the coming period.

For Bitcoin, the critical point is not just whether the inflation data is above or below expectations, but how the data will change expectations regarding the Fed’s interest rate policy.

If inflation, particularly core CPI, falls below expectations, markets may support the expectation that the Fed may pause interest rate hikes at its October meeting. In such a scenario, downward pressure on US bond yields and the dollar could support demand for risky assets, especially Bitcoin.

Conversely, stronger-than-expected inflation data could increase pressure on the Fed to maintain tighter monetary policy and strengthen the likelihood of a rate hike at the December 9th meeting. In such a scenario, rising US bond yields and the dollar could create short-term selling pressure on Bitcoin.

At this point, the probability of a rate hike in December is priced at 82.4%, while the probability of keeping it unchanged is priced at 17.6%, while the US October inflation data, which the Fed closely monitors when making its interest rate decisions, has been released.

Here are the US inflation figures that have been released:

Consumer Price Index Annual: Announced 3%, – Expectation 3.9% – Previous 3.7%

Consumer Price Index Monthly: Announced 0.4% – Expectation 0.3% – Previous 0.6%

Core Consumer Price Index Annual: Announced 2%, – Expected 2.8% – Previous 2.6%

Core Consumer Price Index Monthly: Announced 0.3% – Expectation 0.2% – Previous 0.3%

The U.S. Bureau of Labor Statistics (BLS) will not release annual figures for October 2025 due to the government shutdown. However, according to the released data, inflation still appears to be running high.

Bitcoin’s Initial Reaction After the CPI Data!

*This is not investment advice.