ME News reports that on October 23 (UTC+8), CoinShares released a report stating that Bitcoin demonstrated relative resilience this week amid renewed volatility in risk assets, primarily supported by a rebound in spot demand, improved sentiment in equity markets, and some short-covering. Overall, the market is gradually shifting away from the AI narrative and placing greater emphasis on whether corporate earnings can meet expectations. Weak earnings reports from some U.S. companies triggered sharp stock price fluctuations, which also affected Bitcoin to some extent, yet Bitcoin overall maintained strong resilience. Meanwhile, U.S. macroeconomic signals remain mixed, with the housing market continuing to weaken. On interest rates, the market broadly expects the Federal Reserve to hold rates steady at its upcoming meeting on October 28. Expectations for another Fed rate hike in December remain elevated, with implied probabilities nearing 83%. Weakness in the housing market provides some room for the Fed to pause rate hikes, but last week’s higher-than-expected Consumer Price Index (CPI) and Producer Price Index (PPI) data indicate that inflation remains a key constraint on policy easing. If the Fed unexpectedly hikes rates next week, it could trigger more pronounced market volatility due to exceeding expectations; in contrast, maintaining rates unchanged while continuing to signal a hawkish stance is more likely to be absorbed by the market. Overall, the market remains in a state of competing bullish and bearish forces. Improved spot demand, Bitcoin’s growing ability to withstand equity market volatility, and cooling housing conditions offer some support; however, persistent inflationary pressures continue to limit the Fed’s room for policy relaxation. Bitcoin’s future price movements are expected to remain highly sensitive to interest rate expectations and overall liquidity conditions, with the influence of single-sector or market-specific catalysts relatively limited. (Source: ChainCatcher)
CoinShares: Bitcoin Demonstrates Resilience Amid U.S. Inflation Pressures
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Summary
Bitcoin news from CoinShares indicates the asset has held firm against recent U.S. inflation data. Improved spot buying and positive equity sentiment supported prices, while short covering contributed to stability. The latest inflation data, including unexpected increases in CPI and PPI, continues to constrain upward momentum. The Fed is expected to hold rates steady in October, with a likely hike in December. A surprise rate move could unsettle markets, but a hawkish stance without a surprise is more likely to be well received.
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