Bitcoin News Update: CPI Postponement Creates Data Gap, Markets Await Turbulent Outcome
- U.S. government shutdown delays critical CPI data until October 24, risking accuracy due to 60% missing price quotes, especially in housing. - Cryptocurrency markets face volatility as Ethereum ETFs lose $456M, while delayed CPI complicates Social Security COLA calculations and Fed rate decisions. - Political gridlock over healthcare subsidies prolongs shutdown, with prediction markets forecasting a 60% chance of exceeding 35-day historical precedents. - Markets brace for CPI-driven volatility: a 3% read
The ongoing U.S. government shutdown has interrupted the publication of vital economic indicators, such as the September 2025 Consumer Price Index (CPI) report, which has now been postponed to October 24. The Bureau of Labor Statistics (BLS) is struggling to gather reliable data, with 60% of CPI price inputs—collected through in-person and phone interviews—unavailable for a significant portion of October. This shortfall, especially in the housing sector (which makes up about one-third of the CPI), could expand the 95% confidence interval for the headline CPI, and these inaccuracies may persist into spring 2026. Alternative sources like Truflation and the Adobe Digital Price Index provide some interim perspective, but their methodologies differ from the official CPI, as noted by
The economic fallout from the shutdown goes beyond just delayed statistics. As the partial government closure reaches its 21st day, industries ranging from farming to property are encountering operational disruptions. Although stopgap funding has been put in place, ongoing disagreements over healthcare subsidies—a central issue for Democrats in resolving the shutdown—have stalled broader legislative progress. White House Chief Economic Advisor Kevin Hassett indicated that the administration might take "stronger actions" if Congress does not reopen the government by the end of October, according to a
The cryptocurrency sector has also been impacted.
The delay in CPI data has also complicated the calculation of Social Security's 2026 cost-of-living adjustment (COLA). Traditionally based on the September CPI, the COLA announcement has now been moved to October 24. Experts expect a larger-than-normal adjustment, attributed to President Trump's policies that have kept inflation high. However, the postponed data adds uncertainty, potentially resulting in a COLA that overstates inflation and fails to address broader living cost issues for retirees, as reported by
Meanwhile, the upcoming CPI release has become a key event for global investors. A cooler-than-expected 3% inflation rate for September—lower than the 3.1% forecast—boosted risk assets, sending the S&P 500 to new highs and
Market participants remain split on how the CPI will affect financial conditions. If the reading exceeds 3.1%, the Fed may be compelled to keep rates high, which could dampen risk appetite and weigh on digital assets. On the other hand, an inflation rate below 3% could spark a broader rally, with Bitcoin possibly testing $115,000. The result will also shape the direction of Ethereum and other altcoins, which tend to be more volatile than Bitcoin. Prediction markets on platforms like Myriad estimate a 60% probability that the shutdown will last 35 days, surpassing previous records, as highlighted by
As the U.S. waits for the October 24 CPI figures, both economic and political tensions remain elevated. The absence of timely data has left policymakers with limited information, while markets prepare for increased volatility. With the Federal Reserve's dual goals of controlling inflation and supporting employment increasingly in conflict, the next CPI report could set the course for future monetary policy—and, consequently, the outlook for risk assets such as cryptocurrencies. Investors are encouraged to keep a close watch on the October 24 CPI release and the evolving political situation, as the end of the shutdown remains unresolved.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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