Bitcoin holds key support at $82,500, as this week’s U.S. CPI and PPI data are poised to trigger market volatility.
1 hours ago
Bitcoin’s weekly close held the key support level of $82,500, temporarily avoiding a fall back into its long-term trading range of $60,000 to $80,000. BTC settled at around $83,700 on Sunday, down roughly 3.2% for the week. Traders are closely monitoring this week’s U.S. inflation data to assess future market trends. September’s CPI and PPI figures will be released on Wednesday and Thursday respectively. The market expects the year-over-year CPI rise to climb from 3.4% to 3.7%, while the month-over-month PPI increase is projected to go from 0.2% to 0.3%. Lower-than-expected inflation could ease concerns over further Federal Reserve interest rate hikes, providing support for risk assets including Bitcoin, stocks and gold; higher-than-expected inflation, meanwhile, may intensify market pressure. On the rate front, CME FedWatch data shows the market assigns an 18.8% probability of a 25-basis-point rate hike by the Fed on October 28, and a 70.6% chance of a 25-basis-point hike in December. Separately, U.S. 10-year and 30-year Treasury yields stand at 5.24% and 5.60% respectively. Additionally, WTI crude oil rebounded to around $91.50 per barrel on Monday, up roughly 2% from its intraday low. Traders note that if Bitcoin can sustain its hold on the $82,500 support level, it may continue its rally; a break below this level, however, could expose it to renewed downward pressure.
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