CPI data scheduled for release today is expected to show a 3.6% reading. A higher-than-expected print could increase the likelihood of additional rate hikes, while a lower reading may support a Federal Reserve pause through October, potentially triggering market volatility that could influence cryptocurrency performance in November.
Bitcoin has historically performed strongly in November, with historical data showing average returns exceeding 40% during peak periods. Analysts have noted that smart money participants recently acquired 1,076 BTC worth approximately $90.42 million ahead of the CPI release.
Dominance Levels Signal Accumulation
Bitcoin dominance has broken above the 60% resistance level, suggesting building buying pressure. This development could help support BTC price levels between $75,000 and $80,000, where short-term holders maintain significant cost basis positions that could trigger selling if volatility spikes.
Global liquidity has expanded significantly over the past 30 days. China accounts for 39% of global money supply while the US holds 17%, bringing total global money supply to approximately $140 trillion.
Stablecoin Dominance at Critical Level
USDT dominance has increased more than 2.5% this month, corresponding with Bitcoin's decline from $87,000 to $82,000. This suggests traders have accumulated dry powder while keeping liquidity on standby. However, technical analysis indicates USDT dominance is encountering resistance near 7%, the same level it failed to break during September's mid-month rally.
During that previous period, a rejection of USDT resistance preceded three weeks of downside in stablecoin dominance, while Bitcoin rallied from $74,000 to $87,000. Should this pattern repeat, a rotation into risk assets could provide Bitcoin with momentum to recover toward the $87,000 level.
The confluence of rising global liquidity, smart money accumulation, and potential stablecoin dominance rejection could establish conditions for sustained upside momentum heading into November.
