Crypto market observers are anticipating the US inflation report for September, which is predicted to exceed 3% for the first time in 2025. The Consumer Price Index (CPI) is set to be released on Friday after being delayed due to the government shutdown. Economists forecast a 0.4% monthly and 3.1% annual inflation rise.

Investors are closely watching the CPI print, as a rate cut could be impacted depending on the outcome. Analysts predict that if CPI exceeds 3.1%, it could have a bearish effect on the markets, while a print below 3.1% would be beneficial for risk-on assets. The report will be significant following the government shutdown.

Despite the possibility of higher inflation figures, the Federal Reserve is not expected to be deterred from cutting rates. The central bank is more concerned about the weakening labor market, with a 98.3% probability of a rate cut next Wednesday according to CME futures prediction markets. The ongoing government shutdown could complicate the economic outlook for the Fed’s December meeting.

Crypto market capitalization has risen by 1.8% in the past 24 hours to $3.8 trillion. Bitcoin (BTC) experienced a brief surge above $111,000 before settling around $110,500. Analysts are closely monitoring the market movements, with potential impacts on various assets like gold and XRP.

Read more at Cointelegraph: Delayed US Inflation Report Unlikely to Impact Fed Rate Cut Decision