U.S. inflation rises to 3%, what it means for Bitcoin and crypto markets
U.S. inflation accelerated again in September, marking the fastest increase in consumer prices in more than a year and signaling that the cost of living continues to weigh heavily on American households. According to the latest data from the Bureau of Labor Statistics (BLS), consumer prices rose 0.3% in September, lifting the annual inflation rate from 2.9% to 3% — the highest level recorded since January.
Although the uptick was slightly lower than what economists had forecast, FactSet had projected a 0.4% monthly rise and 3.1% year-over-year, the data still highlights the persistence of inflationary pressures that have challenged policymakers and consumers alike. The increase suggests that while headline inflation has cooled significantly from its 2022 highs, price growth remains stubborn in key sectors such as housing, food, and energy.
The latest figures come amid growing speculation about how the Federal Reserve will respond. The Fed has spent much of the past two years tightening monetary policy, raising interest rates to combat inflation that once topped 9%. Yet despite signs of moderation earlier this year, the September data implies that inflation remains sticky, complicating the central bank’s path toward eventual rate cuts. Economists warn that any renewed upward pressure on prices could delay the Fed’s plans to ease monetary conditions in early 2026.
For American families, the data translates into continued strain on household budgets. Rents, groceries, and energy bills remain elevated, and wage growth, while steady, has not fully offset the rising cost of essentials. As a result, real purchasing power remains under pressure, particularly for lower- and middle-income consumers who spend a greater share of their income on necessities.
Financial markets reacted cautiously to the report. Treasury yields edged slightly higher, reflecting expectations that the Fed may keep rates elevated for longer. The U.S. dollar also strengthened modestly against major currencies, while stock markets traded flat as investors assessed the implications for economic growth and corporate earnings.
Overall, the September inflation report underscores the ongoing challenges facing both the economy and policymakers. While inflation is no longer spiraling, its persistence above the Fed’s 2% target reinforces that the “last mile” of disinflation is proving difficult. Unless price pressures cool more decisively in the months ahead, consumers may continue to feel the pinch, and rate cuts may remain further out of reach than markets hope.
Economists noted that the lower-than-expected Consumer Price Index (CPI) reinforced risk appetite across financial markets. A softer inflation trend typically reduces pressure on U.S. Treasury yields and the dollar, both of which tend to move inversely to Bitcoin. This shift could encourage greater investor confidence, particularly if it signals that the Federal Reserve is nearing the end of its tightening cycle.
With inflation data now priced in, attention turns to the Fed’s upcoming rate decision. Traders are watching whether Chair Jerome Powell will hold rates steady or hint at future cuts. A dovish tone — acknowledging cooling inflation and a softer labor market — could push Bitcoin and altcoins higher. Conversely, a hawkish message emphasizing vigilance could trigger short-term volatility and profit-taking.
Recent labor data showed jobless claims rising slightly to 227,000, suggesting a modest slowdown in employment growth. Analysts say this could influence the Fed to take a more cautious approach, potentially paving the way for rate cuts later this year.
For now, crypto markets appear cautiously optimistic. Bitcoin’s stability above $110,000, combined with steady performance in Ethereum and other top tokens, reflects growing confidence that inflation is easing and liquidity conditions may improve. If the Fed confirms this progress, it could provide the momentum needed for a strong final quarter of 2025 across the digital asset market.
Source: CNN
Bitcoin whales open 40x leveraged shorts ahead of Trump announcement as volatility looms
Bitcoin faced renewed selling pressure on Thursday as major holders, or “whales,” opened aggressive short positions ahead of an expected announcement from U.S. President Donald Trump. According to data from Cointelegraph Markets Pro and TradingView, Bitcoin briefly tested the $110,000 level but failed to maintain it, signaling a lack of bullish momentum and renewed downside risk.
Whales appeared to be betting on increased volatility tied to Trump’s 3 p.m. White House announcement, with some traders taking on extreme leverage. Bitcoin investor Kyle Chasse highlighted one position using 40x leverage as “insane,” noting that liquidation clusters were forming around $106,000, a level that could attract price action if volatility spikes. Charts from CoinGlass showed several large new short positions opening throughout the day, reinforcing bearish sentiment across major exchanges.
The surge in leveraged shorts follows a pattern seen earlier in October, when certain whales appeared to anticipate news and political developments. On October 10, Bitcoin dropped sharply from all-time highs to $102,000 on Binance shortly after Trump-related headlines, fueling speculation about insider positioning. Analysts suggest that similar strategies could be unfolding again, as traders front-run potential market-moving announcements.
Data from on-chain analytics firm Glassnode supported this defensive stance, showing concentrated selling between $109,000 and $115,000. The firm noted that recent upticks were being used to hedge risk rather than accumulate, implying that investors expect continued volatility. “Traders are positioning defensively into strength while the market consolidates,” Glassnode reported.
Market analysts remain divided over short-term prospects. Trader Roman warned that Bitcoin could “get ugly fast” if it drops below $107,000, emphasizing that this level serves as both horizontal and long-term diagonal support within a year-and-a-half uptrend. Another analyst, Daan Crypto Trades, echoed the cautious tone, describing market volume as “pretty thin.”
“The $111K level is what matters in the short term,” Daan wrote, suggesting that a breakout and sustained move above it could open the door to higher prices. Conversely, a failure to hold $107,000 could confirm bearish momentum and accelerate liquidations.
With Trump’s announcement looming and stock markets showing weakness, Bitcoin traders appeared braced for heightened turbulence. For now, BTC remains trapped in a narrow trading range between key support at $107,000 and resistance at $111,000 — a zone likely to determine the next major move.
Source: Cointelegraph
Trump warns China of 157% tariffs but promises “fantastic” U.S.–China trade deal soon
Former U.S. President Donald Trump said this week that a “fantastic trade deal” with China is imminent, signaling renewed optimism amid escalating economic tensions between the two global powers. Speaking from the White House, Trump told reporters that negotiations were “moving in the right direction” and that he expected a full agreement by the end of the month. His remarks followed a high-level meeting with Australian Prime Minister Anthony Albanese, during which the two countries announced a $1 billion partnership to process rare-earth minerals, a strategic move to reduce dependence on China’s dominance in this critical sector.
The trade standoff between Washington and Beijing has intensified in recent weeks. On October 9, China imposed new export restrictions on rare earths, materials essential for electronics and military technology, in what was widely viewed as retaliation against U.S. policies. Trump responded with a stark warning: if no deal is reached by November 1, the United States will impose tariffs as high as 157% on Chinese imports. He emphasized that while China’s measures were aimed at U.S. farmers, particularly soybean producers, his administration would not allow American agriculture to “suffer as punishment.”
Despite the fiery rhetoric, Trump struck a surprisingly conciliatory tone toward Chinese President Xi Jinping, saying that China was showing the U.S. “great respect” and expressing confidence that both sides would ultimately reach an understanding. He confirmed that he expects to meet Xi during his upcoming Asia trip at the end of October, noting, “They threatened us with rare earths, and I threatened them with tariffs.”
On the geopolitical front, Trump sought to calm concerns about China’s increasing military activity around Taiwan. Dismissing fears of an imminent invasion, he stated, “I think we’ll be just fine with China. China doesn’t want to do that.” He emphasized U.S. military superiority, asserting that “nobody’s going to mess with that.”
This marks only Trump’s second public statement about Taiwan since returning to office in January. In August, he told Fox News that Xi had personally promised not to invade Taiwan during his presidency, though the Chinese leader described himself as “very patient.” When asked whether Taiwan’s independence might become a bargaining chip in trade talks, Trump declined to answer — leaving open the possibility that the island’s future could quietly factor into his broader negotiations with Beijing.
Source: Cryptopolitan