BTC, ETH rally on easing U.S. inflation in September report

￰0￱ prices for September were released today, showing a lower-than-expected increase, which signals moderate inflationary pressure and sparked a rally in Bitcoin and ￰1￱ CPI rose to 3% in September year over year, slightly below the forecast expectations of 3.1%, creating expectations that the Federal Reserve will lower interest rates next ￰2￱ Bureau of Labor Statistics released the September CPI results today, showing a 0.3% easing from the previous month’s 0.4% in ￰3￱ report had been delayed due to the ongoing federal government shutdown, which began at the start of this ￰4￱ BLS recalled the suspended employees due to a shortage of work to compile the data before the statutory deadline for the Social Security Administration’s cost-of-living adjustment ￰5￱ pumps roughly 2% today in hopes of softer market conditions According to the report by the BLS, the core CPI excluding food and energy rose 0.2% monthly and 3.0% year-over-year, falling short of the previous estimate of 0.3% and 3.1%, ￰6￱ eased CPI rates marked the second consecutive month of slowed core inflation, supporting the expectations that the Fed may shift its monetary stance next week.

U. S stock futures responded positively following the report, while the 2-year and 10-year Treasury notes ￰7￱ S&P 500 jumped today by 0.98%, the Dow Jones Industrial Average rallied by 1.2%, the Nasdaq 100 jumped by 1.17%, and the Russel 2000 index jumped by 1.63% at the time of ￰8￱ the 2-year and 10-year Treasury notes declined by 0.01% today following the release of the CPI ￰9￱ the cryptocurrency ecosystem, Bitcoin and Ethereum regained bullish momentum following the announcement, driven by optimism that the expected rate cut will ease financial conditions and support riskier ￰10￱ gained roughly 2% after the announcement to trade near $111,842 but declined later , resulting in a 0.22% growth over 24 hours at the time of publication, with a current price of $110,224.04.

The performance represents a recovery from a two-week low near $109,000. Bitcoin, ETH, SOL move as traders bet on 25bps Fed rate cut The Ethereum token briefly touched a price of $4,002, representing a 2.5% jump today after the CPI release, before correcting to a growth of around 0.27% at the time of publication, trading at $3,884.93 based on CoinMarketCap ￰11￱ token SOL added roughly 2.1% today at the time of the CPI release, trading at around $195.31. The token has since declined to a negative 0.6% at the time of publication, trading at $ ￰12￱ rally came as investors renewed hopes that a rate cut would ease financial conditions and support risky ￰13￱ Federal Reserve is set to release its interest rate decision for October, starting next ￰14￱ the inflation data, the policymakers will closely examine it as they prepare for their penultimate rate-setting meeting of ￰15￱ of now, markets widely expect another 25-basis-point cut next ￰16￱ CME FedWatch Tool indicates that traders currently see a 96.7% probability of a rate cut by next ￰17￱ federal funds rate currently stands in a range of 4.0% to 4.25% With limited official data available this month, the CPI report may serve as one of the few indicators guiding next week’s policy ￰18￱ far, Bitcoin remains down about 12% from its October high of $126,198, when tariff tensions between the ￰19￱ China briefly sent investors into safe-haven assets, such as gold.

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