After a weak start to October, BTC price bounced back from the $60,000 bottom prepare investors for a 32% rally ahead of the US CPI data release.
After a weak first week of October, Bitcoin and altcoins are seeing a strong surge in the Asian trading hours on Monday ahead of the US CPI data release this week. BTC price BTC $99 440 24h volatility: 3.0% Market cap: $1.98 T Vol. 24h: $52.82 B gained more than 3% today surging past the $63,500 level earlier today. On the other hand, altcoins led by Ethereum ETH $2 191 24h volatility: 8.5% Market cap: $264.37 B Vol. 24h: $31.33 B have also registered gains in the range of 3-8%.
Last Friday, strong US jobs data dampened the sentiment of 50 bps rate cuts during the November FOMC meeting. The US CPI data for September will arrive this Thursday, October 10, and will be a major indicator of the future market trajectory. This is a crucial macro indicator to help the Federal Reserve steer its ship.
As per the market estimates, the CPI numbers will cool down to 0.1% in September, dropping from 0.2% in the previous month. Additionally, the inflation is likely to stay around 2.3%, dropping from 2.5% in the previous month. The expectation of this cooling inflation is what boosts the crypto market.
Meanwhile, the Core CPI, which excludes volatile energy and food prices, is anticipated to reflect a slower inflation rate of 0.2%, down from 0.3% the previous month. Despite this, the annual Core CPI is projected to hold steady at 3.2%.
In this week ahead, a number of Fed officials will be speaking on the matters of inflation and the future trajectory ahead. Previously, Fed Chair Jerome Powell expressed optimism about easing inflation in the US, while other officials have signaled support for a more substantial rate cut of 50 basis points at the Fed’s meeting later this year.
Bitcoin and Altcoin Rally
Bitcoin and altcoins have started the week on a strong note ahead of the US CPI release. Crypto investors have been eagerly waiting on the sidelines for the Uptober rally while expecting the start of the next bull rally.
Going against market expectations, Bitcoin and altcoins faced a major pullback in the first week of October. However, BTC price has bounced back strongly from the lows of $59,800 last week. Some market analysts believe that the recent recovery sets the stage for a 32% BTC price rally from the bottom while expecting new all-time highs in October.
BTC typically bottoms 3-4 days into October
From the bottom to the end of October, BTC is up 32% (36% if you exclude Octobers that have a negative return)
We tagged 59.8K on Oct 3 after a sell off
If we return 30% on 59.8K, we will end the month at 77.7K pic.twitter.com/9Wirjz9zuG
— jay (@0xjaypeg) October 6, 2024
The BTC rally is important to set the tone for altcoins to catch up and the broader market rally. On the other hand, the meme coin sector is already seeing a strong surge with PEPE PEPE $0.000009 24h volatility: 9.5% Market cap: $3.66 B Vol. 24h: $1.15 B , BONK BONK $0.000012 24h volatility: 6.9% Market cap: $924.67 M Vol. 24h: $234.75 M , and WIF WIF $0.67 24h volatility: 5.4% Market cap: $667.13 M Vol. 24h: $406.24 M gaining more than 11-15% as of today.
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