What happened? Markets are range‑bound as traders wait for Friday’s U.S. CPI.
Bitcoin and Ethereum are trading in tight ranges this morning while traders wait for the U.S. CPI report, which the current government shutdown hasn’t delayed. Bitcoin briefly bounced above $113K earlier this week but is now trading just over $108K, and Ethereum is down about 4.8% over the past seven days. Overall sentiment has steadied a bit amid signs of a thaw in U.S.-China trade tensions and a strong market bet that a tariff deal could happen by Nov. 10.
Who does this affect? Short‑term traders, investors, and anyone watching macro risk.
This mainly affects crypto traders and investors who lean on macro data and volatility for entry and exit decisions. Options and derivatives traders, market makers, and funds that hedge around volatility will be closely watching CPI and trade headlines because muted moves change positioning and spreads. Broader risk‑asset investors and global markets are also exposed, since any change in inflation or trade sentiment can move flows into or out of crypto.
Why does this matter? CPI and trade news could quickly change market direction and volatility.
The CPI report is a likely catalyst that could either reinforce the “soft landing” narrative and push risk assets higher or rekindle volatility and sell‑offs if inflation surprises to the upside. A cooler CPI would probably support crypto rallies, while hotter data would make rates and risk sentiment repricing more likely, hitting BTC and ETH. Meanwhile, easing U.S.-China tensions make a positive backdrop more plausible, so markets could stay bid unless the data or talks suddenly sour.