During the US session, Bitcoin (BTC) could not stop its losing streak, dropping sharply below $59,000, hitting an intra-day low of $58,930. This decline is largely attributed to the higher-than-expected US CPI numbers for September, which showed inflation rising 2.4%, surpassing the market’s forecast of 2.3%.

However, the stronger-than-anticipated inflation figures have triggered concerns about a potential Federal Reserve’s hawkish stance, possibly delaying interest rate cuts.

This uncertainty has dampened market sentiment, leading to a broader crypto market selloff, pushing Bitcoin prices further down.

Bitcoin, Ethereum, Polkadot volatile as US CPI print comes in hotter than expectedhttps://t.co/0ci7xYIixX – The US Consumer Price Index inflation data released today showed that inflation didn't slow down as much as expected in September, which apparently disappointed Bitcoin… pic.twitter.com/bfnoxSArM0
— Orson Merrick (@Orson_Merrick) October 10, 2024

Another factor weighing on Bitcoin (BTC) is the recent surge of regulatory actions targeting the cryptocurrency sector. The SEC’s lawsuit, along with the Department of Justice’s charges against several market makers for market manipulation, has intensified investor anxiety.

Additionally, SEC Chair Gary Gensler’s remarks, describing the crypto industry as rife with “fraudsters,” have further fueled the negative sentiment surrounding BTC.

Impact of Rising Inflation on Bitcoin’s Price and Market Sentiment

On the US front, the latest Consumer Price Index (CPI) data revealed that inflation rose to 2.4% in September, exceeding market expectations of 2.3%.

The CPI showed a monthly inflation rate of 0.2%, consistent with the previous months, but the yearly rate is the lowest since February 2021.

Meanwhile, the Core CPI, which excludes volatile food and energy prices, also rose to 3.3% year-over-year.

Following the CPI release, Bitcoin’s price fell by more than 2%, briefly dipping below $59,000 within the past 24 hours. This decline contributed to a broader selloff in the cryptocurrency market.

Amid these developments, the market is now predicting an 84% chance of a 25 basis point rate cut by the Federal Reserve at their upcoming November meeting, a shift from previous expectations of a larger cut.

Additionally, the US 10-year bond yield climbed to 4.073%, while the US Dollar Index dropped by 0.10% to $102.595, reflecting the current financial climate.

Therefore, the unexpected rise in inflation could lead to increased market volatility for Bitcoin, potentially pushing its price further down. If the Federal Reserve adopts a more hawkish stance, Bitcoin may struggle to regain momentum, risking further declines below $60,000.

Regulatory Pressure Weighs on Bitcoin Price and Market Sentiment

Recent U.S. regulatory actions have added downward pressure to Bitcoin's price. The Department of Justice charged four market makers and over a dozen individuals with market manipulation, while SEC Chair Gary Gensler criticized the crypto industry, calling it rife with fraud.

He noted that many key players are either facing legal trouble or are already imprisoned.

Bitcoin Tumbles Below $59K Amid Inflation Worry, Regulatory Onslaught on Crypto pic.twitter.com/0cKjc2wMlA
— Airdrop Hunter (@freedom198735) October 10, 2024

As a result, market sentiment around Bitcoin has turned negative. Analysts, like Lekker's Thompson, suggest that regulatory scrutiny may keep Bitcoin's price stagnant until after the U.S. elections in November.

The increased legal pressure and harsh remarks from regulators could limit any significant price recovery in the short term.

Key Takeaways:

Legal Pressure: Recent charges and regulatory comments have soured market sentiment.
Range-Bound Trading: Analysts predict Bitcoin will remain range-bound until regulatory clarity improves.
Short-Term Outlook: Bitcoin may face continued selling pressure, limiting its potential for gains in the near future.

Bitcoin Bounces 0.82% but Faces Strong Resistance at $61,000

Bitcoin (BTC/USD) trades at around $60,150, gaining 0.82% on the day after hitting a low of $59,530. The price remains below the 50-day Exponential Moving Average (EMA) at $62,080, indicating strong resistance.

The recent bounce suggests potential short-term bullish momentum, but it remains capped by the $60,740 resistance level. A decisive break above this could target the next resistance at $61,240 and $61,985.

Bitcoin Price Chart - Source: Tradingview — Bitcoin Price Chart – Source: Tradingview

However, immediate support is seen at $59,540, followed by deeper levels at $58,880 and $58,350. The Relative Strength Index (RSI) has recovered to 40, indicating neutral momentum but still below the key 50 mark. A break below $59,540 may trigger further selling, potentially pushing prices back to $58,880.

For now, Bitcoin's short-term outlook is cautiously bearish below $61,240, but a move above $61,240 could change sentiment to bullish.

Key Insights:

Support Break: Immediate support at $59,540 is critical; a break below could lead to deeper declines.
Resistance Levels: A move above $60,740 may open the door to further gains.
RSI Indicator: Neutral momentum, but upside potential if RSI rises above 50.

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PEPE Unchained Raises Over $18 Million: New 10x Meme Coin Potential?

Pepe Unchained ($PEPU) continues to attract attention in the meme coin market, raising $18.4 million in its presale so far. With just a few thousand dollars remaining to hit its $18.6 million target, investors are eagerly watching.

The token’s presale price currently stands at $0.00995 per $PEPU, with a potential price increase expected soon.

Popular crypto analyst Jacob Crypto Bury has released a video discussing $PEPU's growth potential, highlighting its strong presale performance and staking rewards.

Bury maintains a neutral stance but notes that $PEPU's secure contract audits and high staking APY of 499% position it as a potential top performer in the meme coin space.