Bitcoin Taps $112K on Softer CPI as Altcoins Lag
Leah Chen
October 24, 2025
“Macro-sensitive flows are funneling straight into BTC tickers while altcoins grind sideways,” said Arjun Patel, a trader at Genesis Block.
Macro Backdrop
U.S. consumer price data for September came in softer than economists forecast, lowering the odds of an additional Federal Reserve hike and sparking a relief rally in risk assets. Treasury yields eased across the curve, the dollar slipped, and equity futures caught an early bid. Crypto traded in lockstep, with BTC/USD rebounding from sub-$108,000 levels in Asian hours to punch through resistance as Wall Street opened.
Traders said the CPI print encouraged macro funds to re-engage with long bitcoin exposure, citing the coin’s renewed role as a liquid proxy for digital asset beta. Volatility gauges fell sharply, but options desks noted increased demand for topside protection as investors braced for potential data revisions and next week’s GDP release.
Bitcoin’s Reaction
Bitcoin’s spike toward $112,000 was short-lived, but the move reset the week’s trading range and kept price above the 21-day exponential moving average. Spot volumes on Coinbase, Binance, and LMAX Digital climbed, while futures open interest on CME widened modestly. Desk commentary indicated ETF market makers were net buyers for a second straight session, extending inflows that began late Thursday.
Momentum traders are now fixated on the confluence of the 21- and 55-day EMAs near $108,800. A sustained close above that band, they say, could open a run at the $115,000 handle set earlier this month. Failure to hold would risk a reset toward $105,000 where dip-buyers previously emerged.
Altcoins Lose Momentum
Ether lagged the move, hovering near $5,900 as ETH/BTC slipped toward cycle lows. Solana, XRP, and high-beta DeFi names also trailed, leaving altseason barometers at multi-month troughs. Analysts linked the underperformance to investors unwinding relative-value trades that favored ETH and layer-1 exposure during the summer.
The weakness extended to thematic baskets: metaverse tokens fell 2%, and GameFi names posted their third losing session. Market makers observed light liquidity across long-tail tokens, amplifying price swings whenever larger blocks hit the tape.
ETF Flows and Positioning
Spot ETF data compiled by Farside Investors showed $385 million of net inflows over the past two sessions, dominated by BlackRock’s IBIT. Grayscale’s GBTC remained in outflow but at a slower clip, while smaller issuers recorded incremental additions. On the derivatives side, funding rates normalized after Wednesday’s volatility, signaling a modest reset in leverage.
OTC desks said family offices are rotating into bitcoin for year-end performance, preferring what they view as a cleaner macro story compared with altcoin narratives. That flow, paired with lingering caution after the Oct. 10 deleveraging, has left alts struggling to regain sponsorship.
Key Levels Ahead
Technicians are tracking $112,500 as the next topside hurdle, a zone defined by August swing highs and option gamma bands. Immediate support sits at $109,200, with a deeper cushion near $105,800 if the CPI enthusiasm fades. Options markets price a 7% implied move into next Wednesday’s FOMC minutes, suggesting traders expect another burst of volatility before month-end.
For altcoins, ETH/BTC must reclaim 0.053 to avoid further momentum bleed, while Solana bulls are defending $185. Until breadth broadens, strategists advise focusing on BTC-dominated setups and watching ETF flow tallies for confirmation of the rotation narrative.