CPI release

The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4 percent in September on a seasonally adjusted basis after rising 0.1 percent in August, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 8.2 percent before seasonal adjustment.

TL;DR : CPI is probably the most important indicator when it comes to inflation. 8.1% was expected, 8.2% was the result for the month of September. -0.1% compared to August.

NASDAQ / BTC Chart

https://preview.redd.it/3ij8b9dfilt91.png?1354&format=png&auto=webp&s=4f48e7e4cd2c92769c0ff7185bdc5da26dceed54

Within a single minute Bitcoin fell over -2.8% & NASDAQ over -3.6%
Panic sell off worried about upcoming interest rate hikes. NASDAQ reached lows of mid/late 2020.
Bearish sentiment scared of new lows. And what happened literally a couple hours later? It bounced back up.

And not just back up - it bounced way above levels before CPI announcement. Currently NASDAQ is up +1% from before the dump. +1.72% for today.

Bitcoin is nearly at the same level as before the dump. Currently -0.68% the last 24h.

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What does it mean?
Currently Data shows whales are buying up the dip. The money inflow comes mostly from larger buys. Most likely related to the stock market bounce. Possibly result of shorts covering and institutions that were sitting on liquidity waiting for the CPI numbers.

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But what the price action really shows: Nobody knows shit about fuck. No whale, no institution, no retail investor is 100% sure where the market is going right now. This kind of uncertainty happened before with june / july CPI numbers. We can possibly rally from here but also witness the last dead cat bounce before testing new lows.

https://preview.redd.it/2aewld33klt91.png?1125&format=png&auto=webp&s=7a1140e0c9cc519c5bee5027e6d36115a84e8f1d

What does this mean for Crypto?

Crypto price movement is usually related to the stock markets. I picked NASDAQ because especially NASDAQ futures have a strong correlation to BTC. Generally speaking inflation the last months strengthened crypto a bit. Euro € & Pound £ BTC pairs have been experiencing new trading volume highs. While the global economics still look bad and chances for a new bottom are still high there's also a chance for a small relief before we witness those. Only one thing is for sure: Volatility will stay no matter the direction.