QCP Capital: September Inflation is a Critical Date for Bitcoin

Bitcoin price dynamics continue to attract the attention of investors in recent times. QCP Capital emphasizes the increasing importance of inflation data alongside the U.S. government shutdown. The shutdown has created an ambiguous period for investors as it halts the flow of official economic data. The Consumer Price Index (CPI) for September, to be announced on Friday, October 24, will play a critical role in the trajectory of the crypto markets.

QCP Capital stated that the most significant data set determining the Fed's direction in this contentious environment is the September inflation figures. According to expectations, a monthly CPI figure around 0.2% could revive the "soft landing" scenario and increase the upward expectations for Bitcoin prices. However, if the CPI data comes in weaker than anticipated, this could improve liquidity conditions and increase demand for riskier assets.

Conversely, a strong inflation figure could delay the Fed's interest rate cuts, which could create negative pressure on the market. Recently observed significant declines in gold prices are also noteworthy. Gold, experiencing its largest daily drop since 2020, has unsettled investors, while Bitcoin saw a brief recovery, rising to around $114,000 but later pulled back to the $108,000 range.

QCP Capital points out that market volatility remains high. It is assessed that pullbacks before the CPI announcement may be limited by the loosening of DXY and bond yields. It is possible to conclude that investors should closely monitor this critical data announcement.