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Bitcoin Gains 2% as U.S. Inflation Eases to 3% in September

The Bureau of Labor Statistics reported softer inflation despite a partial government shutdown, bolstering market confidence ahead of the Federal Reserve’s expected rate cuts.

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Summary

The Bureau of Labor Statistics released September’s Consumer Price Index (CPI) despite the government shutdown, showing milder inflation figures. Headline CPI rose 0.3% month-over-month versus expectations of 0.4%, while annual CPI increased 3.0% compared to forecasts of 3.1%. Core CPI was up 0.2% monthly and 3.0% annually, both below estimates. Following the report, Bitcoin rose to $111,600 from $110,671, and U.S. stock futures gained, with the Nasdaq 100 up nearly 1%. Treasury yields fell slightly to 3.97% and the dollar weakened. Traders now anticipate a 25 basis-point rate cut at the upcoming Federal Reserve meeting and a similar cut in December, according to CME FedWatch data.

Terms & Concepts
  • Consumer Price Index (CPI): A measure that tracks changes in the price level of a basket of consumer goods and services, used to assess inflation.
  • Core CPI: An inflation gauge that excludes volatile food and energy prices to better reflect underlying economic conditions.
  • Basis Point Rate Cut: A change in interest rates by increments of 0.01%, commonly used to describe central bank policy adjustments.