Bitcoin, Ether, and Inflation: A Tale of Market Folly

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It is a truth universally acknowledged that the release of the Consumer Price Index (CPI) must be in want of stirring the crypto markets into a frenzy of speculation and mild panic.📈💰 Behold, dear reader, for September’s CPI is anticipated to reveal a 3.1% rise in the cost of living-a figure not seen in eighteen months! Such news, though hardly surprising in these times of economic tumult, is nonetheless sufficient to set investors’ hearts aflutter.

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What to Know:

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  • The CPI is expected to show a 3.1% annual increase, the highest in 18 months.📅
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  • Analysts predict the Federal Reserve will still proceed with cutting its benchmark interest rate by a quarter-point next week.😮
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  • Ether is projected to swing 2.9%, while Bitcoin remains the more sedate sibling with a mere 1.4% move.🕺🚶\u200d♂️
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The crypto market, having endured a prolonged absence of fresh economic data owing to the U.S. government shutdown, shall at last receive its due with the CPI release.💃 Alas, this inflation figure may induce greater price swings in Ether than in Bitcoin, the latter being the dignified store-of-value asset. Though, in truth, the expected volatility is but a trifle-nothing to induce fainting spells or hasty decisions.

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Inflation Ticked Higher in September

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The CPI for September, to be unveiled at 12:30 UTC, is anticipated to reveal a 3.1% annual rise-up from 2.9% in August and marking the highest figure in a year and a half. Monthly inflation is expected to match August’s pace at 0.4%. Core inflation, excluding the capricious categories of food and energy, is forecast to increase by 3.1% for the third consecutive month, with a monthly gain of 0.3%.📊

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Consensus holds that this data, whether it exceeds or falls short of expectations, shall not deter the Fed from its intended quarter-point rate cut next week. However, a hotter-than-expected print may bolster the dollar, which, in turn, could stifle gains in the crypto market. As ING analysts remarked with understated eloquence, “We don’t think U.S. CPI will offer that opportunity as we expect a consensus 0.3% MoM core print.”🍵

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Conversely, a lower CPI could ignite a risk-on reaction in markets, according to the digital asset trading firm Zerocap. As John Toro, head of trading at Zerocap, noted, “A drip feed of macro signals in the wake of the crypto pullback two weeks ago means a lower CPI reading could easily stoke bullish sentiment amid an ongoing retail selloff.”📨

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Ether to Swing 2.9%

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According to options market data from Deribit, Ether, the second-largest token by market value, may experience a 2.9% swing following the CPI release-outpacing Bitcoin’s modest 1.4%. Markus Thielen of 10x Research observed, “The options market is currently pricing in a ±1.4% move for Bitcoin following today’s CPI release, while Ethereum is pricing in a larger ±2.9% move.”🔄

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Volmex Finance’s one-day implied volatility indices for Bitcoin and Ether suggest similar expected price fluctuations post-CPI release. Meanwhile, XRP and Solana’s indices stand at 91% and 76%, respectively, translating to projected price moves of approximately 4.7% for XRP and 4% for Solana within 24 hours.🕰️

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Bullish Volatility?

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Importantly, these projected moves are entirely ordinary, reflecting volatility in either direction without implying a bullish or bearish outlook. However, Thielen’s analysis of indicators such as the Stochastic suggests a potential price bounce in Bitcoin. As he quipped, “The daily stochastic indicator is showing signs of bullish divergence, suggesting that downside momentum may be easing.”📉📈

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Bitcoin, Ether, and Inflation: A Tale of Market FollyBitcoin, Ether, and Inflation: A Tale of Market Folly

It is a truth universally acknowledged that the release of the Consumer Price Index (CPI) must be in want of stirring the crypto markets into a frenzy of speculation and mild panic.📈💰 Behold, dear reader, for September’s CPI is anticipated to reveal a 3.1% rise in the cost of living-a figure not seen in eighteen months! Such news, though hardly surprising in these times of economic tumult, is nonetheless sufficient to set investors’ hearts aflutter.

What to Know:

  • The CPI is expected to show a 3.1% annual increase, the highest in 18 months.📅
  • Analysts predict the Federal Reserve will still proceed with cutting its benchmark interest rate by a quarter-point next week.😮
  • Ether is projected to swing 2.9%, while Bitcoin remains the more sedate sibling with a mere 1.4% move.🕺🚶‍♂️

The crypto market, having endured a prolonged absence of fresh economic data owing to the U.S. government shutdown, shall at last receive its due with the CPI release.💃 Alas, this inflation figure may induce greater price swings in Ether than in Bitcoin, the latter being the dignified store-of-value asset. Though, in truth, the expected volatility is but a trifle-nothing to induce fainting spells or hasty decisions.

Inflation Ticked Higher in September

The CPI for September, to be unveiled at 12:30 UTC, is anticipated to reveal a 3.1% annual rise-up from 2.9% in August and marking the highest figure in a year and a half. Monthly inflation is expected to match August’s pace at 0.4%. Core inflation, excluding the capricious categories of food and energy, is forecast to increase by 3.1% for the third consecutive month, with a monthly gain of 0.3%.📊

Consensus holds that this data, whether it exceeds or falls short of expectations, shall not deter the Fed from its intended quarter-point rate cut next week. However, a hotter-than-expected print may bolster the dollar, which, in turn, could stifle gains in the crypto market. As ING analysts remarked with understated eloquence, “We don’t think U.S. CPI will offer that opportunity as we expect a consensus 0.3% MoM core print.”🍵

Conversely, a lower CPI could ignite a risk-on reaction in markets, according to the digital asset trading firm Zerocap. As John Toro, head of trading at Zerocap, noted, “A drip feed of macro signals in the wake of the crypto pullback two weeks ago means a lower CPI reading could easily stoke bullish sentiment amid an ongoing retail selloff.”📨

Ether to Swing 2.9%

According to options market data from Deribit, Ether, the second-largest token by market value, may experience a 2.9% swing following the CPI release-outpacing Bitcoin’s modest 1.4%. Markus Thielen of 10x Research observed, “The options market is currently pricing in a ±1.4% move for Bitcoin following today’s CPI release, while Ethereum is pricing in a larger ±2.9% move.”🔄

Volmex Finance’s one-day implied volatility indices for Bitcoin and Ether suggest similar expected price fluctuations post-CPI release. Meanwhile, XRP and Solana’s indices stand at 91% and 76%, respectively, translating to projected price moves of approximately 4.7% for XRP and 4% for Solana within 24 hours.🕰️

Bullish Volatility?

Importantly, these projected moves are entirely ordinary, reflecting volatility in either direction without implying a bullish or bearish outlook. However, Thielen’s analysis of indicators such as the Stochastic suggests a potential price bounce in Bitcoin. As he quipped, “The daily stochastic indicator is showing signs of bullish divergence, suggesting that downside momentum may be easing.”📉📈

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2025-10-24 08:28