Bitcoin 
$110,896.21Although the price of has faced intense selling pressure in recent weeks, it seems to be on the verge of a sharp upward movement due to the liquidity distribution in the market. Analysts state that the US Consumer Price Index (CPI) data, which will be announced on Friday this week, may be positive and this may bring a new wave of rise in the cryptocurrency market. In the same period, the founder of Strategy Michael Saylor is on the agenda with his post implying that his company may make a new BTC purchase soon. came.
Liquidity Increases in the Bitcoin Market
Coinglass according to data Bitcoin marketThe possibility of a big short squeeze is getting stronger. Liquidity concentrated just above current price levels indicates that a sharp upward movement may be triggered by the closing of short positions. Analysts think that the market generally moves towards high liquidity areas and a similar scenario may occur this time.
ounce of goldFollowing the extraordinary rise in Bitcoin, the view that investor liquidity may shift to Bitcoin has gained ground. The recovery in the Bitcoin/Gold rate gives technical signals about the formation of a bottom in the market.
Cryptocurrency analyst Ted Pillows reported that the Bitcoin premium on the Coinbase exchange has increased, which has historically been a pre-bullish signal. According to the analyst, if the premium increase continues next week, the possibility of a strong rally will become evident. Especially US-based institutional investors coinbase Buy-side transactions on the market indicate higher demand compared to global stock markets.
US Inflation Data May Be Critical for the Fed
Inflation indicator for September despite the ongoing government shutdown in the US Consumer Price Index It has been confirmed that (CPI) data will be announced on Friday, October 25. Since this development comes just a few days before the Fed meeting on October 29, it has the potential to directly affect expectations regarding monetary policy. It seems that a 25 basis point interest rate cut is currently priced in the markets. If the data is positive, it is expected that risk appetite will increase again and the trend towards cryptocurrencies will accelerate.
On the other hand, at the beginning of the month, the US President Donald Trump‘s announcement of a 100 percent tariff on China increased volatility in the cryptocurrency market, increasing sales and overshadowing the positive outlook known as “Uptober”. But investors’ eyes are now inflation data and possible interest rate reduction decision.
