Bitcoin’s CME-Gap Closes as CPI Concerns Weigh on Risky Assets

The following are key points.

• Bitcoin drops to $106,000 while gold struggles to recover after daily major losses.

• BTC’s price continues its low-timeframe liquid games following the failure to sustain higher support.

• CPI Week begins to impact crypto assets and risky assets.

BitcoinBTCGold prices fell to new lows on Wednesday, but remained at $108,000.

The price of bitcoin and gold has changed dramatically, causing a halt to the celebrations.

Data Source Cointelegraph Markets Pro You can also find out more about the following: TradingView BTC prices were volatile after reaching $106,100 in earlier hours of the day.

Market commentators warned of the dangers of an a retest of $100,000 Even if you don’t want to, lower levels to come. 

Bitcoin bulls are facing a resurgence of US dollar strength, despite the US dollar index’s (DXY) slight decline at time of publication.

As a result, gold is continuing to fall from its all-time highest levels, and could lose up to $4,000 in support.

“Again, the only reason we pumped was due to gold dumping,” Crypto trader Roman wrote X is a way of referring to local highs above $114,000. 

“I don’t think this move has any validity & binance is hard selling everything.”

Monitoring resource data CoinGlass The bid price was pushed up to $107,000 with new offers immediately overtaking the old.

“This is a key area before retesting the Friday lows and wick not much lower than that,” trader Daan Crypto Trades continued.

Daan Crypto Trades noted The price of the weekend had ended “gap” CME Group offers Bitcoin Futures.

“The CME gap was closed and have a decent bounce in the short term but price action is all over the place. It truly is, ‘It’s over, we’re back szn’ aka, VERY choppy, illiquid and volatile price action,” he added.

US Inflation – CPI shines light on it

Prior to the US government shutdown, the risk assets are still under significant pressure.

Related: Bitcoin price to 6X in 2026? M2 supply boom sparks COVID-19 comparisons

Consumer Price IndexCPIThe Federal Reserve will use the September release, due this Friday, to determine future rate adjustments.

“All other releases will remain frozen until the shutdown ends. That makes CPI the singular anchor for next week’s policy rhetoric and market reaction,” The latest trading report from QCP Capital, a financial services company, said:Asia ColorMarket Update 

“A softer print near 0.2% would re-anchor the soft-landing trade and reinforce BTC’s upside skew as liquidity expectations improve.”

QCP forecast that any weakness in the DXY will support a “buy the dip” Bitcoin Investors’ mentality

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.