Bitcoin Price, Altcoins Rally on US CPI Decline as Fed Rate Cut Chances Jumps to 99%
October 24, 2025
Key Notes
- Bitcoin price could rally to claim the upside liquidity at $114,000, however, a failure to break past this could trigger a sharper correction.
- With headline and core CPI both coming in at 3.0%, below forecasts of 3.1%, markets anticipate a 25 bps Federal Reserve rate cut next week.
- Altcoins Ethereum, XRP, and Binance Coin rose 3-5% following cooler-than-expected US inflation figures.
BTC
$110 126
24h volatility:
0.1%
Market cap:
$2.19 T
Vol. 24h:
$55.26 B
price saw a sharp upside to $111,500 levels, extending its daily gains to 2.5% on softer-than-expected US CPI numbers for the month of September.
With inflation on a clear decline in the US, the chances of Fed rate cuts next week has surged to 99% as per data from CME Fed Watch tools.
As a result, altcoins are staging a quick rally with Ethereum
ETH
$3 875
24h volatility:
0.4%
Market cap:
$467.29 B
Vol. 24h:
$33.44 B
XRP
$2.47
24h volatility:
2.8%
Market cap:
$147.95 B
Vol. 24h:
$3.83 B
BNB
$1 100
24h volatility:
3.2%
Market cap:
$153.06 B
Vol. 24h:
$2.73 B
, gaining over 3% each.
Bitcoin Price Eyes Rally to $114,000 on Softer Inflation and US CPI Data
Bitcoin price bounced back from the $110,000 support levels following the release of the US CPI data.
Crypto analyst Ted Pillows stated that Bitcoin (BTC) needs to reclaim the $113,000-$114,000 range to confirm further upside potential.
He also warned that if the current rally turns out to be another false breakout, the market could experience a sharp correction in the near future.
The US Labor Department released a “rare exception” Consumer Price Index (CPI) report amid the ongoing government shutdown, showing inflation cooled more than expected in September.
Related article: Where Is Altseason? Money Is Rotating Back into Bitcoin, ETH ETFs Bleed
Headline CPI rose 3.0% year-over-year, slightly below the 3.1% forecast, while core CPI, which excludes food and energy, also came in at 3.0%, under expectations of 3.1%.
Both the monthly headline and core CPI readings were weaker than projected, signaling softer inflationary pressures. This has once again triggered the risk-ON sentiment and paved the way for another Federal Reserve rate cut next week.
Amid the CPI inflation data, the US market is also showing strength with the S&P 500 gaining nearly 1% to record highs and approaching nearly 6,800.
Altcoins Rally as Fed Rate Cut Expectations Grow
The overall cooling of inflation is good for altcoins, as the Federal Reserve could pivot further towards quantitative easing. The data from CME Fed watch tool shows a 99% chance of another 25 bps rate cut coming next week on October 29.
However, it remains to be seen whether the bulls could pull this off for a sustained altseason. On-chain data shows that the Trump insider whale reportedly opened $150 million in long positions ahead of former President Trump’s speech today.
The trader, who claims a 10/10 success rate, is said to have accurately predicted every major pump and dump in Bitcoin and Ethereum.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Author
Bhushan Akolkar
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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