Bitcoin spiked to $84,000 at 08:00 UTC on October 14 before settling around $83,450 in European morning trading, as crypto markets held steady ahead of U.S. inflation data expected to influence the Federal Reserve’s October 28 rate decision.
The brief rally came as altcoins retreated. The CoinDesk 80 fell 0.6% since midnight UTC, while the CoinDesk 20 gained 0.2%. The CoinMarketCap Altcoin Season index dropped to 55 from 60 a week prior, signaling weakness across smaller-cap tokens.
Economists polled by Dow Jones estimated annual inflation quickened to 3.6% from 3.4%. The CPI reading marks the last inflation data before the Fed’s scheduled decision on October 28. New York Fed President John Williams said “he saw no need for interest-rate increases in 2027,” leaving room for one more hike this year.
Liquidations and Leverage Shifts
Bitcoin and ether traders are de-risking, with open interest (OI) declining 3.5% in Bitcoin and 2.7% in Ether. The moves signal positions are being closed and capital is leaving the two largest cryptocurrencies.
Liquidations fell sharply to $136.32 million, an 80% decline from prior levels. The 24-hour crypto futures volume dropped 26% to $156.79 billion, while cumulative open interest fell 2.27% to $140 billion.
Leverage appears to be rotating into altcoins over the past 30 days, with OI in tokens like NEAR and Wormhole rising significantly. Zcash (ZEC) posted a 1% spot price gain alongside a 3% estimated rise in new contracts opened. ZEC’s OI increased 4%, while annualized perpetual funding rates for the token stood at 10%.
Altcoin Performance and Volatility
Among major altcoins, Optimism declined 4.2% since midnight, while KITE gained 5.3% and PYTH rose 4.5%. VVV added 2.4%, ZEC gained 1.7%, and LDO fell 2.9%. JTO dropped 2.8%, UNI declined 2.5%, DFI fell 1.8%, STRK lost 4.5%, KAIA fell 3.8%, and TIA declined 3.7%.
Bitcoin’s implied volatility (BVIV) bounced to 40%, higher than its 50-day and 100-day averages, reflecting elevated uncertainty ahead of the inflation print. Shorts accounted for 52% of crypto futures flow.
Infrastructure and Ecosystem Updates
Uniswap’s Unichain completed testnet migration to OP Enterprise on October 13, with the mainnet move to Optimism scheduled for October 29. Under the arrangement, Optimism will run Unichain’s production infrastructure, including its sequencer.
Broader market conditions showed mixed signals. Brent crude traded at $106 per barrel, while S&P 500 index futures gained 0.2%. Average gasoline prices stood at $4.34 per gallon, up from $3.08 a year earlier.
