Analyzing Bitcoin’s surge as CPI data fuels rate cut speculation
Journalist
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Key Takeaways
The KOSPI made new all-time highs, and merchants ought to be careful for elevated buying and selling quantity over 5–7 days to sign that the subsequent uptrend is underway.
Over the previous two days, Bitcoin [BTC] noticed a worth surge of three.53%, shifting from $111.5k to $115.4k. On the eleventh of September, the U.S. Bureau of Labor Statistics launched the August 2025 CPI numbers.
The info proved to be the third time in 2025 that the Producer Worth Index (PPI) figures pointed to outright deflation.
This information, mixed with the heightened chance of charge cuts on the FOMC assembly subsequent week, might set the stage for a longer-term Bitcoin rally.
Nonetheless, merchants and traders should be cautious of short-term volatility, particularly within the hours instantly previous and following the discharge of main information associated to the U.S. job market and rate of interest selections.
Knowledge reveals that the BTC bull development is prone to proceed
In a put up on CryptoQuant Insights, analyst Arab Chain remarked that the Bitcoin surge in August was pushed by elevated buying and selling quantity and improved reserves.
The spot turnover depth highlights the connection between quantity and alternate reserves.
Excessive quantity relative to reserves reveals excessive turnover depth, and that BTC is actively traded, and market confidence is excessive.
Low quantity in comparison with reserves reveals low turnover depth, and that giant quantities of Bitcoin had been sitting idle on the alternate, indicating an absence of sturdy shopping for or promoting stress.
The analyst identified {that a} worth drop beneath $110k alongside elevated reserves and a lower in turnover would imply that sellers had been taking management of the market.
Nonetheless, a continuation upward is extra seemingly than a sudden dump based mostly on the info at hand.
The Korea Composite Inventory Worth Index (KOSPI), South Korea’s essential inventory index, made a brand new all-time excessive, climbing previous 2021 highs.
Every time the KOSPI made an ATH, Bitcoin was buying and selling near the all-time excessive of the cycle.
This doesn’t imply Bitcoin holders ought to take income and exit the market instantly. Moderately, it was an indication that the bull run was nearing its finish and certain had only some extra months left to complete.
Crypto analyst Axel Adler Jr identified that the short-term holder realized worth was at $108.1k, marking an necessary assist stage.
As long as the BTC worth trades above this assist, fears of a deep worth reset could be unwarranted.
