Analysts: The easing of inflation creates room for Bitcoin to rise, but downside risks still loom.

PANews October 24 news, according to The Block report, after the release of the US CPI data, the price of Bitcoin has risen. Analysts state that although structural market risks remain, the CPI report has eliminated significant policy uncertainty. Nic Puckrin, co-founder of Coin Bureau, believes this data release is “the most influential inflation report of the year,” reducing uncertainty brought about by the government deadlock and paving the way for the Fed to extend the easing cycle. He pointed out that if Bitcoin breaks through $116,500, it is expected to set a new high, and when liquidity decreases over the weekend with no negative news, investors may shift from gold to Bitcoin, driving its rise. However, he warned that a prolonged government shutdown would suppress bullish sentiment and hinder policy effectiveness; if the shutdown continues into November, the structural bill for the crypto market and the approval of altcoin ETFs will be delayed, and the time for legislation before the holidays will also be reduced. Some experts urge caution. Before the CPI report was released, Misir, head of BRN research, stated that the market is in a “confidence verification phase.” He warned that the open interest in options is nearing historical highs, and traders face negative gamma risk, with prices approaching the liquidation point around $114,000 potentially triggering significant volatility, and the distribution of long-term holders constraining ETF demand and capital accumulation. He believes that while the data eliminates policy uncertainty, the structural weakness in the market remains, and the rise could quickly reverse.