What happened?
Bitcoin’s short-term momentum reversed after a 3.5% pullback, sliding from about $114,000 back to the $107,000–$108,000 support zone. Traders are on edge ahead of the U.S. CPI report now set for October 24, with inflation having risen six months in a row and consensus at 3.1%. On the charts BTC is testing $110k–$112k support and could face deeper losses if it breaks below $106k.
Who does this affect?
Active crypto traders and short-term investors feel the biggest impact as volatility and spot volumes surge, with Binance daily volumes up to $5–$10 billion since October 10. Macro and institutional players tracking CPI and Fed rate expectations may rotate capital between assets like gold and Bitcoin depending on the print. Gold holders could also be affected because a sharp drop in gold increases the chance of some capital flowing into risk assets including BTC.
Why does this matter?
The CPI outcome is a near-term market mover: softer inflation would boost hopes for Fed easing and could trigger strong Bitcoin rallies similar to past rate-cut reactions. Even a small rotation from gold to Bitcoin could produce outsized gains for BTC — models suggest 3–4% flows could lift prices substantially. But an upside surprise on inflation or a technical break below $106k would likely accelerate selling, making the report a key catalyst for direction in crypto and broader risk markets.