Bitcoin (BTC) reacted dynamically to the release of the US CPI report last week, on Friday, October 24, 2025. According to data shared today by CryptoQuant, BTC spiked following the publication of the inflation index last Friday but faded before making a higher move. On Friday, Bitcoin’s price witnessed an impressive jump, rising to a level of $111.5k after the announcement of a softer than anticipated US CPI figures for the month of September. The report shows a 3.0% decrease in the inflation rate in the US. Although that is a small drop, it holds a huge psychological shift in the landscape of global markets.
Crypto Markets Resurgence Amid Decreased Inflation
Historically, a decrease in the US inflation rate eases fear in global markets and consequently turns investors into investment FOMO. For several months, investors experienced more volatility triggered by persistent inflation. The price cooldown in consumer goods (as shown in this softer inflation report) improved investor sentiment and eased the pressure on the Fed for interest rate hikes. The drop in the inflation index has increased the likelihood of the Fed potentially further cut interest rates in the coming days, with metrics from CME FedWatch tools predicting 99% possible action by the financial regulator to reduce rates soon.
Due to this economic context, Bitcoin and multiple altcoins are witnessing upturns, with BTC, ETH, and XRP gaining 5.84%, 6.02%, and 9.35% over the past week, respectively, according to the latest data from CoinMarketCap. The price of BTC recovered from its support of $108,306.09 following the publication of the US CPI report. According to market analyst Ted Pillow, Bitcoin needs to rise above the $113k and 114k zone to affirm greater upside capability.
Current Crypto Market Overview
Bitcoin and other crypto assets have been gaining since the beginning of this week, driven by optimism about another interest rate cut from the Fed and a trade reconciliation between China and the US. BTC reached a new ATH of $126,000 on October 7, after surpassing its previous record of $124,000 noted on August 14. The intensified hostility between Beijing and Washington regarding trade tariffs on October 11 was the key catalyst for the recent plunge noticed in the larger crypto market.
Now the two parties are indicating signs of reaching a long-lasting agreement, subject to the upcoming meeting between China’s president Xi Jinping and the US’s Donald Trump later this week.
Also, markets weigh the possibility of the Fed decreasing interest rates by 0.25% this week after Friday’s CPI report indicates a 3% inflation drop in the previous month. A decrease in interest rates tends to weaken the dollar’s valuation and make risky assets (like cryptos) more attractive.
