Will Bitcoin Experience a 12% Rally Following the Next CPI Report, Similar to the Previous Occurrence

• Following a 3% drop on Wednesday, on October 12, the price of Bitcoin (BTC) showed signs of approaching the $27,000 mark.

• Thursday's rise in BTC price was influenced by the most recent Consumer Price Index data from the US Bureau of Labor Statistics.

• Positive results from the CPI report prompted an increase in Bitcoin (BTC) spot market activity, although decreasing trading volumes indicate worries of a bearish market trend.

The recent movement in Bitcoin's price, aiming to reclaim the $27,000 level after a 3% decline on Wednesday, is seen in light of historical data-driven analysis regarding potential reactions to the latest Consumer Price Index (CPI) data released by the US Bureau of Labor Statistics.

The CPI report released on October 12 indicates a 0.4% increase in household inflation in September, demonstrating a noteworthy 0.2% decrease from the 0.6% recorded in August 2023. This decline in CPI has been perceived positively by investors. The CPI, published monthly, serves as a crucial economic indicator by tracking the average change over time in the prices paid by urban consumers for a basket of goods and services. It offers valuable insights into inflation trends and the potential changes in citizens’ investment patterns in the coming months.

Following the last CPI report, Bitcoin (BTC) experienced a 12% price surge. Generally, investors in risk-on assets such as stocks and cryptocurrencies view it as a positive sign when the US CPI reflects low or lower-than-expected inflation, often leading to increased investments in risk assets due to reduced pressure on citizens' disposable income.

The most recent CPI report indicates a 0.2% lower inflation rate compared to the previous month, in contrast to the August 2023 report, which showed a 0.4% increase in inflation. This is expected to trigger a more positive response from Bitcoin investors when compared to the previous month. If these economic forecasts align with historical trends, it's anticipated that BTC price could retest $30,000 in the coming weeks. However, it’s important to keep an eye on the escalating tensions in the Middle East, as they remain a critical factor to watch.