- U.S. inflation reaches a 17-month high at 3.1%
- Fed’s focus is on the job market
- Potential rate cuts remain on schedule
U.S. inflation is expected to reach a 17-month high of 3.1% in September 2025, due to tariff impacts, according to Wall Street and Investopedia forecasts.
Rising inflation, driven by tariffs, could influence Federal Reserve rate decisions, impacting market volatility and crypto-assets like Bitcoin.
U.S. Inflation Hits 17-Month Peak at 3.1%
The U.S. inflation rate in September touched 3.1% year-over-year, escalating from previous levels. Such an increase is largely attributed to tariffs imposed by former President Trump earlier, which have progressively affected prices across various sectors including apparel and furniture. Despite the raised inflation, the Fed’s approach remains primarily focused on the labor market rather than an immediate policy shift on inflation.
As of October 23, 2025, Bitcoin (BTC) stands at $108,428.20 with a market cap of approximately $2.16 trillion. It maintains market dominance at 59.33%, despite recent price declines over several periods. According to CoinMarketCap, its trading volume in the last 24 hours shows a decelerating pace of change, down by 28.35%.
Insights from the Coincu research team suggest that while crypto volatility is influenced by inflation shocks, the broader market impact may remain subdued with current Fed trends and no major shifts in regulatory stance expected. Long-term inflationary concerns might lead to renewed interest in digital asset hedges.
Cryptocurrencies Steady Amid Anticipated Fed Rate Cuts
Did you know? Past tariff rounds initiated rapid inflation shocks in U.S. CPI, marked by heightened volatility in cryptocurrencies like Bitcoin. Historically, these assets serve as inflation hedges, reflecting persistent yet unpredictable trends.
As of October 23, 2025, Bitcoin (BTC) stands at $108,428.20 with a market cap of approximately $2.16 trillion. It maintains market dominance at 59.33%, despite recent price declines over several periods. According to CoinMarketCap, its trading volume in the last 24 hours shows a decelerating pace of change, down by 28.35%.
Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 03:00 UTC on October 23, 2025. Source: CoinMarketCapInsights from the Coincu research team suggest that while crypto volatility is influenced by inflation shocks, the broader market impact may remain subdued with current Fed trends and no major shifts in regulatory stance expected. Long-term inflationary concerns might lead to renewed interest in digital asset hedges.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/markets/us-inflation-fed-policy-2025/
