After the US government shutdown, bitcoin will face its first inflation data test

Bitcoin and the broader financial marekt are gearing up for the release of the first inflation data since the US government shutdown on October 1, with analysts expecting a dovish response from the market. The consumer price index (CPI) data, originally scheduled for release on Friday, will play a key role in the Federal Reserve's interest rate decision next week.
The report comes at a time of huge uncertainty for the US economy, with officials and economists unable to access the latest labour market data due to the government shutdown. "Bitcoin and the broader market are expected to respond modestly to this key macro event this week," said Tim Sun, senior fellow at HashKey Group, a digital asset financial services company. "Given slowing job growth and plateauing demand, even a small, better-than-expected increase in the CPI data is unlikely to materially change market expectations."
Derek Lim, head of research at Caladan, a cryptocurrency market maker, echoed Sun, noting that if US inflation data were in line with expectations and less biased, "the most likely outcome would be a muted market reaction".