What Could Happen to Bitcoin, Ether, XRP, and Solana After the U.S. Inflation Figures Are Out?

Crypto Markets Brace for September CPI; Ether Poised for Higher Volatility Than Bitcoin

Crypto traders are turning their attention to September’s Consumer Price Index (CPI), set for release Friday, the first major economic data point since the U.S. government shutdown. FactSet expects a 3.1% year-over-year increase, the highest in 18 months, up from 2.9% in August, with a 0.4% monthly rise matching the prior month.

Core Inflation and Fed Outlook

Core CPI, which excludes food and energy, is projected to rise 3.1% YoY for the third consecutive month, with a 0.3% monthly gain. Economists expect the Federal Reserve to proceed with a 25 basis point rate cut next week regardless of the outcome.

A hotter-than-expected print could strengthen the U.S. dollar, potentially tempering crypto gains, while a softer reading may spark a risk-on reaction, according to Zerocap.

Expected Crypto Volatility

Options data show Ether (ETH) could swing ±2.9%, outpacing Bitcoin’s (BTC) ±1.4%. XRP and Solana implied volatility suggests 24-hour moves of 4.7% and 4%, respectively. These numbers indicate potential price swings without signaling bullish or bearish bias.

Technical Outlook

Bitcoin shows early bullish stochastic divergence, suggesting downside momentum may be easing and a short-term recovery could be possible, according to Markus Thielen of 10x Research.

The CPI release is expected to drive heightened volatility across crypto, with Ether and other high-beta tokens likely to react more sharply than Bitcoin.