Bitcoin Eyes Renewed Momentum After Softer US CPI Data, CryptoQuant Suggests

• CPI rose 0.3% in September, below expectations, driving S&P 500 and Nasdaq to new highs.

• Bitcoin experienced initial volatility but showed signs of following the risk-on trend in global markets.

• Institutional inflows into crypto lag behind equities, with Bitcoin trading 9.26% below its all-time high as of recent data.

Crypto risk appetite surges post-US CPI: Bitcoin rallies amid cooling inflation. Discover how this impacts markets and what it means for investors in 2025. Stay informed on crypto trends today!

What is the impact of the September 2025 US CPI data on crypto risk appetite?

Crypto risk appetite has shown early signs of revival following the release of September 2025 US Consumer Price Index (CPI) data, which indicated a modest 0.3% increase—slightly below consensus forecasts. This softer inflation reading, combined with resilient economic growth, has fueled a broader risk-on sentiment across global markets, lifting equities and prompting Bitcoin to follow suit after initial volatility. Blockchain analytics firm CryptoQuant highlighted this shift in a recent analysis, noting that while stocks like the S&P 500 and Nasdaq hit new all-time highs, cryptocurrencies are gradually catching up.

Comparison of Bitcoin’s price performance relative to CPI readings over the last year. Source: Cryptoquant

The CPI data underscores a cooling inflationary environment without derailing economic momentum, creating favorable conditions for speculative assets. CryptoQuant’s on-chain metrics reveal increased transaction volumes in Bitcoin shortly after the announcement, suggesting investors are repositioning toward higher-risk opportunities. However, the firm cautions that full conviction in crypto may take time as traditional markets lead the charge.

How are equities and metals performing relative to Bitcoin after the CPI release?

Equities have outperformed in the immediate aftermath of the September 2025 CPI data, with the S&P 500 and Nasdaq Composite surging to record levels, extending their strong performance throughout the year. Gold and silver prices, meanwhile, traded flat, indicating a temporary pause in safe-haven demand as inflation eases and growth holds steady—CryptoQuant described this as the metals market “quietly waiting” for further signals. Bitcoin, while up initially, experienced a classic pattern of announcement-driven volatility: a quick rise followed by a pullback, and then a higher recovery, though it remains about 9.26% below its all-time high.

The S&P 500 and Nasdaq Composite surged to record highs after the CPI release. Source: CryptoQuant

This divergence highlights the nuanced interplay between macroeconomic indicators and asset classes. Data from CryptoQuant shows that institutional interest in equities has accelerated, with inflows surpassing those in crypto during similar past cycles. For Bitcoin, the lag reflects ongoing caution among investors, who are monitoring Federal Reserve policy cues closely. Experts at CryptoQuant emphasize that while the risk-on narrative is resurgent, cryptocurrencies often trail until broader conviction builds, supported by metrics like exchange reserves and wallet activity showing tentative increases.

The return of risk appetite marks a pivot from the defensive stance earlier in the quarter, where higher-for-longer interest rate expectations weighed on growth assets. The CPI’s below-expectation print has reinforced bets on potential monetary easing, benefiting risk-sensitive markets. In crypto specifically, on-chain data indicates a modest uptick in active addresses and transfer volumes for Bitcoin, correlating with the equity rally but at a slower pace. This pattern aligns with historical trends post-CPI releases, where initial enthusiasm gives way to sustained momentum only after volatility subsides.

CryptoQuant’s analysis points to resilient US economic growth—evidenced by steady job reports and consumer spending—as a key enabler for this shift. Without linking to external reports, their insights draw from aggregated blockchain data, revealing that Bitcoin’s price action mirrored CPI surprises in 2024 but with amplified swings due to lower liquidity. Market participants, including institutional players like hedge funds, are reportedly reallocating from cash positions into equities first, with crypto exposure following as sentiment solidifies.

Frequently Asked Questions

What does the September 2025 US CPI data mean for Bitcoin prices?

The 0.3% CPI rise in September 2025, cooler than the prior month’s 0.2% and below expectations, has sparked a Bitcoin rally by signaling easing inflation pressures. This supports a risk-on environment, though Bitcoin’s 9.26% discount to its all-time high indicates room for catch-up growth as institutional inflows build, per CryptoQuant data.

Is crypto risk appetite fully returning after the latest US inflation report?

Yes, crypto risk appetite is showing early signs of return following the softer US CPI data, with Bitcoin following equity gains after volatility. However, it lags behind stocks, as investors await stronger conviction amid resilient growth and potential Fed policy shifts, according to blockchain analytics.

Voice search queries often focus on real-time implications, and this response aligns by explaining the phased recovery: initial market pops, stabilization, and gradual crypto integration into the broader risk narrative.

Key Takeaways

• Inflation Cooling Boosts Risk Assets: The September 2025 CPI’s 0.3% increase, below forecasts, has driven equities to highs and prompted Bitcoin’s volatile but upward response.
• Equities Lead, Crypto Follows: S&P 500 and Nasdaq surges outpace Bitcoin’s 9.26% lag from ATH, with metals steady as safe havens pause.
• Monitor Institutional Flows: CryptoQuant data shows inflows trailing past cycles; watch for Fed signals to accelerate crypto momentum and investor participation.

Conclusion

The September 2025 US CPI data has reignited crypto risk appetite, with Bitcoin and broader digital assets benefiting from cooling inflation and robust economic growth, even as equities take the lead. As highlighted by CryptoQuant’s on-chain insights, this environment fosters renewed investor interest, though caution persists until full conviction emerges. Looking ahead, sustained positive macro trends could bridge the gap between traditional and crypto markets, encouraging diversified portfolios—consider tracking key indicators like exchange activity for timely opportunities in 2025.