Bitcoin Surges Past $112,000 Amid Lower CPI and Improved Risk Appetite

Bitcoin (BTC) has soared beyond the $112,000 mark following the release of the U.S. Consumer Price Index (CPI) data for September on October 24, which indicated easing inflation. Investors welcomed the unexpectedly low inflation rate of 3% year-over-year, spurring optimism for risk-oriented assets across global markets. This dovish inflationary trend has heightened expectations of a potential interest rate cut by the Federal Reserve (Fed), further bolstering confidence in the cryptocurrency market.

Currently, Bitcoin is trading at $112,113, reflecting a 2.8% daily increase, according to CoinMarketCap. The leading cryptocurrency holds a robust market capitalization of $2.22 trillion (approximately 3,191.67 trillion KRW). Altcoins have also rallied alongside Bitcoin, with Ethereum (ETH) surpassing $3,979, gaining over 3%. Binance Coin (BNB) climbed to $1,128, while XRP gained more than 3%, trading at $2.49. Solana (SOL) showed stability at $193, and HyperLiquid (HYPE) reached $39.8, underscoring bullish sentiment across much of the cryptocurrency sector.

September CPI Data Inspires Optimism for Risk Assets

The latest CPI report from the U.S. Bureau of Labor Statistics revealed a year-over-year inflation increase of 3.0% for September, accompanied by a month-over-month rise of 0.3%. Both figures came in below market forecasts of 3.1% and 0.4%, respectively, signaling a continued easing of inflationary pressures. Core CPI, which excludes volatile food and energy prices, also showed improvement, slowing to 3.0% annually.

Economic analysts have interpreted the data as broadly supportive for risk assets, including Bitcoin, given its indication of the Fed's likely adoption of a more accommodative policy. Markets are now pricing in a higher probability of a 25 basis-point interest rate cut by the Federal Open Market Committee (FOMC) in one of its upcoming meetings.

Adding fuel to the crypto rally are evolving policy discussions, such as the Trump administration's historically favorable stance on digital assets and deliberations surrounding initiatives like a "national Bitcoin reserve." These macroeconomic factors have amplified market sensitivity to developments in inflation and monetary policy.

Bitcoin’s Technical Momentum: Resistance and Recovery Zones

Although Bitcoin briefly surpassed the $112,000 level, it retreated slightly due to profit-taking activity. Regardless, BTC appears to have established strong support above the $110,000 threshold, maintaining its short-term bullish trajectory. From a technical standpoint, further upside movement could see Bitcoin testing key resistance levels between $115,000 and $118,000. Conversely, potential downward corrections may find support near $108,000.

Ethereum is also showing signs of strength, attempting to reclaim the $4,000 milestone as trading volumes increased 15% compared to the previous day. Analysts speculate this broader market momentum could spill over into altcoins, amplifying the strength of Bitcoin-led rallies.

Anticipated Market Catalysts: XRP and Solana ETF Decisions

Looking ahead, all eyes are on early November as the U.S. Securities and Exchange Commission (SEC) prepares to review applications for XRP and Solana ETFs. These decisions could serve as critical market catalysts, influencing investor sentiment and shaping the near-term trajectory of cryptocurrencies.

Overall, Bitcoin and altcoins remain in a strong position to capitalize on favorable shifts in inflation outlooks, policy discussions, and upcoming regulatory milestones. By sustaining current bullish trends amidst a promising macroeconomic environment, the cryptocurrency market could unlock further growth opportunities as optimism builds across the sector.