Bitcoin lags as U.S. inflation cools and risk-on sentiment returns, says CryptoQuant

Bitcoin and broader crypto markets are showing early signs of renewed investor appetite after ￰0￱ data came in softer than expected, according to blockchain analytics firm ￰1￱ a post on X, the firm noted that a “risk-on” tone has returned across global markets since the release of September’s Consumer Price Index (CPI) data, which showed inflation cooling modestly while economic growth remains ￰2￱ of Bitcoin’s price performance relative to CPI readings over the last year.). However, as of the time of reporting, it had dropped to 9.26% and still lags behind equities in terms of recent momentum. However, the analytics firm suggested that the sentiment shift in traditional markets could spill over into crypto.

“Risk appetite is back,” it said, “but not fully into crypto yet.” Risk-on narrative returns The inflation print appears to have revived investors’ willingness to come back into growth and speculative assets, which is a change from the defensive tone that dominated markets earlier in the ￰3￱ to reports, the CPI data provided an extra boost to an already optimistic market mood, lifting both equities and cryptocurrencies in anticipation of a more accommodative monetary policy path. CryptoQuant’s data suggests that institutional inflows have yet to match the pace seen during the previous market ￰4￱ for conviction The interplay between macroeconomic trends and digital assets has grown increasingly ￰5￱ CryptoQuant pointed out, cooling inflation plus strong growth is the perfect mix for stocks.

However, it also observed that the crypto market is yet to fully catch ￰6￱ also shows that institutional and retail investors, while showing signs of a revival in their spending, are still approaching the asset class with caution, despite improving macro ￰7￱ Bitcoin continues to mirror risk-on patterns, recent market events show that it’s still very much prone to liquidity dynamics and the pace of Federal Reserve policy ￰8￱ CryptoQuant put it, “The story of this CPI print” is that inflation is cooling, stocks are at record highs, metals are steady, and Bitcoin is lagging but ￰9￱ your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.