Important points:
-
Bitcoin price trends have been volatile, mainly due to lower-than-expected CPI trends.
-
The outlook for the US Federal Reserve (Fed) to continue lowering interest rates through 2026 is increasing optimism for risk assets.
-
BTC finds resistance at $112,000 as a major support recovery level emerges.
Bitcoin (BTC) saw new volatility on Friday as U.S. inflation data sent stocks to new all-time highs.
CPI easing helps push US stocks to new highs
Data from Cointelegraph Markets Pro and TradingView shows BTC price rose to $112,000 before reversing on Wall Street.
September consumer price index (CPI) numbers were lower than expected across the board, providing a key tailwind for cryptocurrencies and risk assets.
According to the official release from the U.S. Bureau of Labor Statistics (BLS), both the CPI and core CPI were 0.1% below expected levels, at around 3%.
Following the news, trade publication Covisi Letter said the figure “paves the way for another Fed rate cut next week.”
“This report was released as a ‘rare exception’ during the U.S. government shutdown,” the paper said, as the S&P 500 index soars to record levels.
CME Group’s FedWatch tool, which tracks market odds on the Federal Reserve’s interest rate moves, overwhelmingly supported a 0.25% cut on Oct. 29.
“Overall financial conditions remain accommodative, with further tailwinds from the Federal Reserve expected to cut interest rates in its two remaining meetings this year,” trading resource Mosaic Asset Company said in its latest analysis.
“That should support the economic and corporate earnings backdrop, which is needed to drive upside into next year.”
BTC price struggles despite CPI easing
Bitcoin still had to contend with pressure from sellers at the opening of the U.S. market today.
Related: Worst uptober in history? Bitcoin price is at risk of going into the red in October for the first time in several years
Traders remain nervous, with X commentator Exitpump warning that there is little support below the spot price.
$BTC By the way, the bidding side of the purps order book is thin, so it could be dumped quickly pic.twitter.com/udWTGVJuqS
— Exit Pump (@exitpumpBTC) October 24, 2025
Trader Diego White said the liquidity situation in the exchange’s order book was “heavy” as Coinglass data showed the price approaching a new bidding ladder around $110,000.
Caleb Franzen, creator of financial research resource Cubic Analytics, has flagged three exponential moving averages (EMAs) that are now essential to reclaim as support.
“So far, BTC$ has rebounded at the 200-day EMA. But now it needs to close above 21/55, which acted as resistance in the retest earlier this week,” he told X Followers.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.
