Bitcoin price spiked over $111,000 on October 24, 2025, after lower-than-forecast U.S. inflation figures were released. Consumer Price Index (CPI) in September was just 0.3% higher than a month ago, below the forecasted 0.4%, and supported expectations of further Federal Reserve interest rate cuts in 2025.
Bitcoin Price Reaction
The most recent CPI report showed a 3.0% year-over-year inflation rate, lower than expected. The reading came at a particularly good time as it was released after a 10-day delay amid the current government shutdown, which has put other economic reports on hold. For Bitcoin Magazine, the report solidified bets on a 25 basis point rate cut in the next Federal Reserve meeting, having the policy rate at 3.75%–4.00% potentially.
Market Dynamics
After the release of the CPI, BTC price increased, mirroring an overall market reaction to the data. Treasury yields decreased, and the U.S. dollar lost strength, leading to a bullish Bitcoin market. The price had dropped to levels around $107,000 earlier in the week based on prior analyses from analysts but was provided with additional momentum with the release of CPI.
Future Outlook for Bitcoin
The price of BTC today is about 13% lower than its high of about $126,000 on 6th October, 2025. As market forces continue to change, analysts are closely monitoring liquidity trends as well as macroeconomic indicators. In case the Federal Reserve acts with rate cutting based on inflation data, it would further enhance Bitcoin’s position as an inflationary hedge.
