Data Shows Bitcoin Short Squeeze Likely With Speculation of “Bullish” US CPI

After facing strong selling pressure, Bitcoin (BTC) is preparing for a potential short squeeze to grab liquidity on the higher side. Market experts are turning bullish ahead of the US CPI data for September, coming this Friday. On the other hand, Michael Saylor has hinted at another big purchase coming ahead for BTC.

Bitcoin Short Squeeze In the Making

As per the data from Coinglass, a major short squeeze could be forming in the Bitcoin market, with a significant amount of liquidity now concentrated above current price levels. Experts believe that markets usually move towards areas of high liquidity.

Thus, the next move for BTC could be higher from here. Furthermore, some experts believe that the Gold liquidity can now shift to Bitcoin, after an unprecedented rally in the yellow metal. The BTC/Gold ratio is flashing signs of a market bottom.

Crypto analyst Ted Pillows hinted at the surge in the Coinbase Bitcoin premium, a trend that indicates a bullish signal ahead. The analyst added that if this premium continues to rise into next week, it could set the stage for a major Bitcoin rally. A growing Coinbase premium typically indicates stronger U.S. institutional and retail demand compared to global exchanges.

Uncertainty in the crypto market has been rising recently, with a 100% Trump tariff announcement on China earlier in October. This has so far derailed the ‘Uptober’ rally that started on a good note earlier this month.

On the other hand, Michael Saylor prepares for another major BTC purchase. Saylor’s firm currently holds 820,000 BTC valued at approximately $69 billion, with an average acquisition price of $64,000 per BTC.

The chart, which marks past purchases with orange dots, indicates another large buy could occur as soon as Monday, October 20.

US CPI Release On Friday Despite US Shutdown

An unusual development is unfolding this week as the U.S. Consumer Price Index (CPI) inflation data is set to be released on Friday, despite the ongoing US government shutdown.

The release comes just five days before the Federal Reserve’s October 29 policy meeting, at a critical moment when officials are weighing whether to continue interest rate cuts. The Labor Department confirmed that no other economic reports will be rescheduled or released until the shutdown concludes.

This has sparked market speculation that the September CPI data could come in “bullish,” potentially influencing the Fed’s next policy decision. Currently, experts are already pricing in a 25 bps rate cut this month.