Awaiting the Release of the U.S. Inflation Report and Its Impact on Bitcoin

Bitcoin remains above $83,000 ahead of the release of the U.S. inflation report, with traders awaiting important economic data this week. The Consumer Price Index report for the U.S. for September will be released today, October 14, 2023, at 16:00 Iran time. Economists expect that monthly inflation in the U.S. for September will be 0.6% and annual inflation will be around 3.6%. Core inflation is also expected to have risen by 0.2% compared to the previous month and 2.5% compared to last year. The surge in gasoline prices is considered one of the main factors contributing to the overall increase in inflation. The reaction of the bond market and changes in expectations regarding the Federal Reserve's interest rates could have a greater impact on Bitcoin. If inflation is reported higher than expected, the likelihood of continued tight monetary policy increases, which could put additional pressure on Bitcoin and other risky assets. Conversely, lower-than-expected inflation could alleviate concerns about further interest rate hikes. Bitcoin briefly rose to around $84,000 before the data release but has since returned to near $83,000. Therefore, today's report could be one of the main drivers for breaking the current range and increasing BTC volatility.

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