Bitcoin opened October trading at $84,200, marking a 1.2% lift from Friday’s close amid a backdrop of easing US inflation figures that dampened fears of another Fed rate hike — a move that had earlier pushed the price above $85,000 before retreating.
The latest CPI reading, released on Thursday, showed year‑over‑year inflation at 3.4%, below the 3.7% forecast and the 4.8% peak seen earlier this year. Analysts at Delta Exchange note that the softer data has lifted risk sentiment, but elevated Treasury yields, currently hovering around 4.5%, keep risk‑averse investors cautious.
Institutional flows paint a mixed picture. Spot Bitcoin ETFs posted net outflows of 1.8 million shares in the last session, while Ethereum ETFs saw a 2.3 million‑share withdrawal. Yet Giottus CEO Vikram Subburaj highlighted that September still registered net inflows of 3.2 million shares into Bitcoin ETFs, a key factor that bolstered the asset’s September 7% rally.
In September, Bitcoin’s 7% surge outpaced the NIFTY 50’s 2.3% gain and gold’s 1.1% decline, underscoring its relative strength among risk assets. Ethereum traded near $2,700 on October 1, while BNB, XRP, and Solana remained largely flat.
Market sentiment sits in the greed zone per the Crypto Fear and Greed Index, and Asian equities leaned positive while US stocks closed unevenly. Oil eased to $88 per barrel, providing some inflation relief.
Forward guidance points to the US jobs data on Friday, the next inflation report, and Treasury yield movements as the primary catalysts. If employment figures remain robust, Treasury yields could tighten further, potentially curbing Bitcoin’s upside. Conversely, weaker jobs data would likely support higher risk appetite and a continued climb in Bitcoin’s price.