Analyst: Slowing inflation creates room for Bitcoin to rise, but downside risks remain

Bitcoin prices climbed after the release of US CPI data. Analysts stated that while structural market risks remain, the CPI report eliminated significant policy uncertainty. Nic Puckrin, co-founder of The Coin Bureau, considered the data release "the most influential inflation report of the year," reducing uncertainty caused by government gridlock and paving the way for the Federal Reserve to extend its easing cycle. He noted that Bitcoin could reach new highs if it breaks through $116,500. He also noted that with reduced liquidity over the weekend and no negative news, investors could shift from gold to Bitcoin, driving its price higher. However, he warned that a prolonged government shutdown would dampen bullish sentiment and hinder policy implementation. If the shutdown continues into November, the crypto market structure bill and the approval of altcoin ETFs would be delayed, reducing the time available for legislation before the holiday.