30s Summary

Bitcoin’s value remained unstable around $61,000, impacted by higher-than-expected US inflation data. All commodities saw a 2.4% price increase over the past year, while unemployment figures reached their highest level since June 2023. Amid speculation on the Federal Reserve’s next move, some expect more quantitative easing and rate cuts, possibly boosting Bitcoin. Meanwhile, QCP Capital warned of sources of instability, including Fed records and potential selling pressure on Bitcoin from Silk Road movements. Despite new highs for the S&P 500, optimism in crypto markets is low, potentially recovering if the $60,000 key support level for Bitcoin holds.

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Bitcoin’s value was relatively unstable around the time of the Oct. 10 Wall Street opening as varied US inflation data sent things topsy-turvy.

Interesting info from Cointelegraph Markets Pro and TradingView noted Bitcoin’s shaky price hovering around the $61,000 mark. The US Consumer Price Index (CPI) numbers from September were higher than predicted, showing that inflation was stronger than we initially thought.

Quotes from the US Bureau of Labor Statistics confirmed that everything from apples to zippers – basically all commodities – saw a 2.4% price bump over the past year before any adjustments for the seasons. At the same time, the numbers of people without jobs were the highest they’ve been since June 2023. Joining these two facts together really puts the Federal Reserve in a tricky spot.

Many are scratching their heads, wondering why the Fed decided to drop by 50 basis points. Given that this decision came, oddly enough, right after the Fed announced that the economy had reached ‘maximum employment’, it’s clear that Bitcoin traders took note. Will the Fed folks potentially focus more on the status of job numbers rather than a minor CPI bump?

Crypto expert Michaël van de Poppe suggests that we might hear more chatter about QE & more rate cuts, which could spell good news for Bitcoin. Many of the big guys in the market think there’s an 87% chance of the Fed chopping a 0.25% interest rate at its November meeting.

With the focus on other topics important to cryptocurrency and risk assets, trading company QCP Capital points to both internal and external sources of instability. For starters, records from the Fed’s September get-together were less than optimistic. Also, there’s worry about selling pressure on Bitcoin thanks to some movement with Silk Road bitcoin.

Despite a new high for the S&P 500, the same level of positivism is not reflected in the crypto market, probably due to concerns over more Silk Road Bitcoin selling and PlusToken Ethereum selling. According to QCP in a recent note to Telegram channel subscribers, that optimism could return if the $60,000 key support level holds firm. So, it seems QCP joins others in hoping for a Bitcoin price turnaround before the month ends, as October typically sees a 23% gain.

Source: Cointelegraph