BITStar2

10/25 09:47

Bitcoin spikes to $112K on soft US CPI data as S&P

Bitcoin spikes to $112K on soft US CPI data as S&P 500 hits record high



Bitcoin 
BTC
$110,969
 saw fresh volatility Friday as US inflation data sent stocks to new all-time highs.

CPI relief fuels new highs for US stocks
Data from Cointelegraph Markets Pro and TradingView showed BTC price gains tapping $112,000 before reversing at the Wall Street open.

The September print of the Consumer Price Index (CPI) came in below expectations across the board — a key tailwind for crypto and risk assets.

Both the CPI and core CPI were 0.1% below their anticipated levels, circling 3%, according to an official release from the US Bureau of Labor Statistics (BLS).


CPI 12-month % change. Source: BLS
Reacting to the news, The Kobeissi Letter, a trading resource, said that the figure “paves the path for another Fed rate cut next week.”

A new model channels RPC infrastructure spending into onchain liquidity and real yield, transforming costs into usage-driven rewards.

The last cycle taught DeFi protocol builders a hard lesson: incentive emissions pump charts, then drain treasuries and trust. Total value locked still appears large on dashboards, but headline TVL near the $150 billion mark masks fragile retention and cyclical outflows as farmers chase higher APRs elsewhere. The result is a growth engine that sputters whenever token rewards thin out.

Industry leaders have warned about this loop for years. The well-worn playbook includes shipping a token, spraying incentives to boost TVL, celebrating the spike and then watching capital rotate away. It creates surface-level momentum without durable value. The model invites mercenary liquidity and leaves communities with overhangs and weak fundamentals.

Sustainable yield comes from services that people actually use and pay for: blockspace, liquidity provision, security, compute and data access. Fees tied to real utility are modest, but they scale with usage and they compound. The question DeFi has wrestled with is where to find more of these “real economy” revenue streams that don’t rely on continual token issuance.

 
“This report was published as a ‘rare exception’ during the US government shut down,” it noted, as the S&P 500 surged to fresh record levels.

CME Group’s FedWatch Tool, which tracks market odds of interest-rate moves by the Federal Reserve, overwhelmingly favored a 0.25% reduction on Oct. 29.


“Financial conditions remain loose overall and are receiving another boost as the Federal Reserve is expected to cut interest rates at its two remaining meetings this year,” trading resource Mosaic Asset Company wrote in its latest analysis. 

“That should be supportive for the economy and corporate earnings backdrop, which is necessary to drive the rally into next year.”

BTC price struggles despite CPI relief
Bitcoin still had to contend with sell-side pressure at the US market open on the day. 

Traders remained on edge, with X commentator Exitpump warning that little support was in place below the spot price.


Trader Diego White described exchange order-book liquidity conditions as “heavy,” as data from CoinGlass showed price approaching a new ladder of bids around $110,000.

Caleb Franzen, creator of financial research resource Cubic Analytics, flagged three exponential moving averages (EMAs) that were now essential to reclaim as support.

“$BTC is rebounding on the 200-day EMA, so far. But now it needs to break & close above the 21/55, which worked as resistance during the retest earlier this week,” he told X followers.

#Claim1,200 USDT in the Monthly Creation Challenge#Check In Daily, Win Prizes Daily — Join the Fun!#Vote to Share 500 USDT#Do you think EDEN is promising?

33Share