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Question #159

How did economic indicators such as the Consumer Price Index affect Bitcoin’s price movements in October 2025?

Category: General
Positive retail sales data announced on October 20 failed to move Bitcoin materially and prices still largely remained range bound between $110,000 and $112,000.
Positive October 22 CPI data reduced inflation fears and triggered a Bitcoin rally from below $110,000 to above $114,000 reflecting sensitivity to economic indicators.
A surprise drop in the US unemployment rate on October 23 spurred a minor Bitcoin selloff from $113,000 to $111,000 as markets quickly adjusted.
Higher than expected CPI readings in late October led to a Bitcoin decline from $112,000 to $108,000 as investors priced in potential rate hikes.

Why is this the correct answer?

This is correct because on October 22 the Consumer Price Index showed lower inflation, which eased concerns about rate hikes and led traders to buy Bitcoin. Prices moved from under $110,000 to over $114,000 in response. For beginners this illustrates how macroeconomic reports like the CPI can directly impact cryptocurrency markets by influencing perceptions of monetary policy and risk assets.

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