Leading cryptocurrency Bitcoin (BTC) made a positive start to the week in which critical data will be announced.
While wondering whether this rise will continue, Singapore-based cryptocurrency company QCP Capital evaluated the current situation.
At this point, QCP Capital analysts stated that they remain optimistic about Bitcoin despite CPI concerns.
Analysts stated that Bitcoin started October with a decline but things are getting back on track, and investors' expectations for the fourth quarter continue to rise.
Analysts stated that this week's CPI and PPI data are being followed carefully, adding that the data could affect expectations for a FED interest rate cut.
Analysts stated that the expectations for an increase in October continue and wrote:
“Bitcoin has regained momentum after a bumpy start in October, stabilizing around $60,000, and the Uptober narrative appears to be back on track.
The Uptober narrative combined with strong NFP numbers helped BTC find strong support around 60K.
And despite the pullbacks, options data is bullish for Q4, with investors targeting $75,000 and $95,000 for December.
With additional rate cuts and BTC's strong correlation to equities, we are still optimistic about a strong October.
However, all eyes will be on the US CPI data to be released this Thursday.
With recent strong U.S. wage and jobs figures, CPI data will be closely watched to see if there is a rise in inflation.
“Expectations for a Fed rate cut have shifted from 50 basis points to 25 basis points in just one week, and this week's data will determine whether further cuts are priced in.”
*This is not investment advice.