The post How Will “Unusual” US CPI Inflation Data Release Could Impact Fed Rate Cut, Crypto Market? appeared on BitcoinEthereumNews.com.

Global stocks and crypto markets are bracing for the US CPI inflation data release this Friday. The CPI data could significantly raise volatility and uncertainty in the crypto market and impact the upcoming Fed rate cut. Investors are also closely monitoring upcoming trade talks between the United States and China. The “Unusual” CPI Release During the US Government Shutdown Despite the government shutdown, the U.S. Department of Labor (DOL) earlier confirmed that it’s calling back some staff to release the US CPI inflation data. The release was postponed for another week and scheduled for October 24. The Kobeissi Letter quoted the release as “unusual” because it comes 5 days before the expected October 29 Fed rate cut. Also, it is the first time CPI data will be reported on a Friday since January 2018. US Economic Calendar Notably, the Labor Department said that no other economic data releases will be rescheduled or produced until the government shutdown ends. This comes at a time when the Fed officials remain mixed on further Fed rate cuts amid sticky inflation. However, Fed Chair Jerome Powell signaled another 25 bps rate cut. Markets are positioned bullish amid a lack of key economic reports. The CME FedWatch Tool also indicates high probabilities for a 50-bps rate cut in total this year, despite rising uncertainty and volatility. If the headline CPI inflation comes in hot at 3.1% or above, the FOMC could decide to hold current rates. If CPI cools, this could indicate economic weakness. With signs of credit stress renewed after Western Alliance and Zions bad loans, Strike CEO Jack Mallers sees Bitcoin and the crypto market recovery. Crypto Market Rebounds The broader crypto market saw a much-anticipated bounce, with gold prices falling after hitting an ATH of $4,375. This happened after Donald Trump’s cooled…

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Filed under: News - @ October 20, 2025 11:28 am