1. Why did Bitcoin drop below $110,000 in September 2025?
Bitcoin fell due to profit-taking, ETF outflows, and investor caution ahead of key US inflation data, which could impact Federal Reserve policy decisions.
2. When is the next US CPI report, and why does it matter for Bitcoin?
The next CPI report is scheduled for October 15, 2025. It will influence inflation expectations and the timing of Fed rate cuts, both of which directly affect Bitcoin.
3. What levels are traders watching for Bitcoin in the short term?
Resistance is between $113,000 and $115,000, while support lies between $105,000 and $108,000. A break below $105,000 could trigger deeper declines.
4. How does inflation affect Bitcoin prices?
High inflation and tighter monetary policy reduce investor appetite for risk assets like Bitcoin. Lower inflation can boost confidence and attract new buyers.
5. Could Bitcoin recover to $120,000 after the CPI release?
If inflation data comes in cooler than expected, optimism about earlier Fed easing could fuel a strong rebound, potentially sending Bitcoin back toward $120,000.