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In a strong market reaction to softer-than-expected U.S. inflation data, Bitcoin briefly spiked to $112,000 on Friday before retreating slightly, while the S&P 500 hit a fresh all-time high amid renewed optimism for continued Federal Reserve rate cuts.
According to the U.S. Bureau of Labor Statistics (BLS), both the headline and core Consumer Price Index (CPI) came in 0.1% lower than expected, hovering around 3%. This easing inflation data reinforced market expectations of another 0.25% interest rate cut in the Fed’s upcoming October 29 meeting, as shown by CME Group’s FedWatch Tool.
Analysts suggest that the Fed’s ongoing rate-cut cycle through 2026 will continue to support risk assets, boosting equities and crypto markets alike. “Financial conditions remain loose overall and are receiving another boost as the Federal Reserve is expected to cut interest rates at its two remaining meetings this year,” noted Mosaic Asset Company in its latest analysis.
However, despite the macro optimism, Bitcoin faced sell-side pressure at the U.S. market open, with traders warning of limited support below $110,000. Technical analysts pointed to key exponential moving averages (EMAs) that Bitcoin must reclaim to maintain bullish momentum.
Crypto analyst Caleb Franzen stated, “Bitcoin is rebounding on the 200-day EMA, but needs to break and close above the 21 and 55 EMAs, which acted as resistance earlier this week.”
The broader crypto market also saw gains, though volatility persisted across major assets.
Top 5 Cryptocurrencies by Market Value (Oct 24, 2025)
| Rank | Cryptocurrency | Symbol | Price (USD) | Market Cap (USD) |
| 1 | Bitcoin | BTC | $111,200 | $2.18 Trillion |
| 2 | Ethereum | ETH | $3,180 | $382 Billion |
| 3 | Binance Coin | BNB | $622 | $96 Billion |
| 4 | Solana | SOL | $202 | $94 Billion |
| 5 | XRP | XRP | $0.63 | $35 Billion |
Despite the CPI-driven rally, analysts warn that Bitcoin must sustain support above $110,000 to confirm a breakout. The next few sessions are expected to be pivotal as investors await confirmation of the Fed’s policy direction.
The lower U.S. inflation print has reignited risk appetite, pushing stocks to record highs and giving Bitcoin room to climb. However, sustained gains will depend on macro stability, Fed action, and Bitcoin’s ability to maintain key technical levels.
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