PANews reported on October 22nd that QCP Capital, a Singapore-based crypto investment firm, published an analysis stating that the market's focus is on the Consumer Price Index (CPI). After a week of significant volatility, risk assets remain stable within a narrow range. The ongoing US government shutdown has halted the release of most official data from the Bureau of Labor Statistics (BLS), the Bureau of Economic Analysis (BEA), and the Census Bureau. The only major hard data release the Federal Reserve will see in the near future is the September Consumer Price Index (CPI), which the BLS has made an exception and will be released on October 24th. All other data releases will remain frozen until the US government shutdown ends. This makes the CPI the only key anchor for policy statements and market reactions next week. A mild CPI reading, close to 0.2%, would reaffirm the "soft landing" scenario for the economy and, with expectations of improved liquidity, strengthen Bitcoin's upward trend.
Despite continued reports of tensions, the tone has become increasingly mixed, with tariff threats offsetting renewed "deal" talks. Gold retreated sharply from its all-time high, suffering its largest single-day drop of 2020 due to profit-taking and a stronger dollar. Silver also fell. Bitcoin briefly found buying support, surging to around $114,000 amid a metals market correction before retreating below $108,000 in volatile trading. Market volatility remains elevated ahead of the CPI data release, and further declines in the US Dollar Index (DXY) and two-year real interest rates could support the pullback.
