Syed Saif Ul Hassan 
Oct 25, 2025
In the wake of softer-than-expected US inflation data, the Bitcoin price rose to $112,000 on Friday before falling again.
Meanwhile, the S&P 500 touched a new all-time high, driven by optimism surrounding Federal Reserve rate cuts.
The US Bureau of Labor Statistics reported that both the headline and core Consumer Price Index (CPI) were 0.1% lower than expected, stabilising at 3%.
This ease in inflation has led to growing expectations for a 0.25% interest rate cut at the Fed’s upcoming meeting on October 29, according to CME Group’s FedWatch Tool.
According to analysts, the Fed's ongoing rate-cut spell, estimated to continue through 2026, will bolster risk assets, benefiting both equities and cryptocurrencies.
Mosaic Asset Company noted that, in light of a favourable financial outlook, upcoming rate cuts may further boost.
Despite this positive market sentiment, Bitcoin encountered selling pressure at the US market open, with concerns about maintaining support levels below $110,000.
While the crypto market secured gains overall, analysts warn that Bitcoin must hold above $110,000 to confirm a breakout, which shows that the coming sessions will be crucial as investors await clarity on the Fed’s policy direction and Bitcoin’s performance.
