US CPI Data Shows 3.0% Inflation Amid Shutdown, Market Uncertainty

The U.S. Consumer Price Index (CPI) for September was released after a delay caused by a prolonged government shutdown, showing inflation rose 0.3% month-over-month and 3.0% year-over-year, slightly below expectations. This softer inflation reading has reinforced market expectations that the Federal Reserve may cut interest rates soon, impacting the U.S. dollar, which showed marginal decreases following the report. The CPI data also influenced cryptocurrency markets, with Bitcoin traders displaying increased caution and defensive positioning ahead of and following the data release, reflecting concerns over potential volatility. Despite the cautious sentiment, the crypto market showed positive reactions with gains in Bitcoin, Ethereum, and major altcoins, as the inflation data suggested easing price pressures and a possible Fed pause or rate cut. Geopolitical tensions, including potential U.S.-China trade talks and new U.S. sanctions on Russia, also contributed to currency market fluctuations. Overall, the CPI report amidst the government shutdown and geopolitical factors has created a complex environment influencing traditional and digital asset markets alike.