Bitcoin Smashes $110K in Red-Hot Market Week
Optimism also extended to major altcoins. Solana (SOL), XRP, and Dogecoin (DOGE) posted gains of up to 5%.
Quick overview
- Bitcoin advanced over 1% as investors anticipated two Federal Reserve interest-rate cuts by year-end.
- U.S. inflation data showed a lower-than-expected annual CPI of 3% for September, despite the ongoing government shutdown.
- Major cryptocurrencies, including Ethereum and altcoins like Solana and XRP, experienced gains, while Bitcoin is trading within a critical range.
- Political developments, including Donald Trump's pardon of Binance's founder, positively influenced market sentiment and sparked a rebound in Bitcoin.
The world’s largest cryptocurrency advanced more than 1% as investors priced in two Federal Reserve interest-rate cuts before year-end.
Despite the ongoing U.S. government shutdown, newly released CPI data showed annual inflation at 3% in September, below the 3.1% forecast.
Although volatility remained elevated throughout the week, the crypto market closed with gains of up to 7.7%. Bitcoin (BTC) climbed 1.3% over the past 24 hours to $111,100, while Ethereum (ETH) posted a sharper 3% increase and is pushing back toward the $4,000 level.
Optimism also extended to major altcoins. Solana (SOL), XRP, and Dogecoin (DOGE) posted gains of up to 5%, while Binance Coin (BNB) edged 0.5% lower.
Crypto assets once again reacted to politics following Donald Trump’s pardon of Binance founder Changpeng Zhao, which sparked an immediate rebound of 3% in Bitcoin and 5% in BNB. The move was interpreted as a positive signal for the industry and a softer regulatory tone from Washington.
From a technical standpoint, Bitcoin is trading within a critical range between $106,000 and $115,000, where an upside breakout could confirm the start of a new cycle. The report notes that October acted as a “cleansing phase,” marked by leveraged-position unwinding and still-volatile institutional flows. Near-term momentum hinges on a weekly close above $113,000, while the long-term outlook depends on institutional capital and whether politics shifts from being a headwind to becoming a market catalyst.
U.S. inflation comes in softer than expected despite the government shutdown
Friday’s figures showed the U.S. Consumer Price Index (CPI) rose 3% year-over-year in September, below expectations of 3.1%, while the monthly reading increased 0.3%, also under forecasts.
The core CPI, which the Fed monitors closely as an underlying gauge of inflation, rose 3% annually and 0.2% on the month. Analysts had expected increases of 3.1% and 0.3%, matching August’s readings.
The release was delayed due to the shutdown—now lasting more than three weeks—and carried extra weight given the data blackout caused by the suspension of most official economic reports.
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