The crypto market is holding its breath as investors await the U.S. inflation report for September, which has been delayed until Friday due to the ongoing government shutdown. Inflation is expected to come in around 3.1%, a level that could influence overall market sentiment but is unlikely to halt the anticipated interest rate cuts from the Federal Reserve.

The report from the U.S. Bureau of Labor Statistics, better known as the Consumer Price Index (CPI), is seen as a key indicator of economic health. The delay in publication adds extra tension to the markets, which have been waiting for clarity for weeks.

According to economic forecasts, inflation in September rose by 0.4% compared to the previous month, with an annual increase of approximately 3.1%. This would mark the first time this year that inflation has risen above 3%.

What does this mean for the crypto market?

The CPI figures can impact the performance of risk assets such as crypto. When inflation comes in higher than expected, it can lead to investor caution. An inflation rate of 3.1% or higher could reduce the likelihood of a swift rate cut, while a figure below 3% may be seen as a positive signal for the markets.

Some market analysts emphasize that a lower inflation number could help increase liquidity and confidence in risk assets like crypto. A modest monthly rise in CPI could also pave the way for further monetary easing later this year.

Focus shifts to the labor market

Although inflation data remains important, the Federal Reserve‘s focus has increasingly shifted toward the labor market. The probability of an interest rate cut at the next meeting is currently considered very high. However, uncertainty surrounding the U.S. budget and the ongoing government shutdown continues to cloud the economic outlook.

Cautious optimism in the crypto market

Despite the tension around the inflation report, the crypto market remains cautiously optimistic. The total market capitalization has risen by nearly 2% over the past 24 hours to around $3.8 trillion. Bitcoin led the increase with a brief spike above $111,000 before slightly pulling back.

While Friday‘s figures may influence short-term sentiment, the overall picture remains one of growing confidence and resilience within the crypto sector — a sign that the market continues to evolve despite economic uncertainty.

Disclaimer: This is not financial advice. Always conduct your own research and seek professional guidance before making investment decisions.