Is the BTC price expected to challenge $1.5 million? CZ predicts that Bitcoin will surpass gold's $30 trillion market capitalization.

With short positions being squeezed and Spot demand taking over, the price of Bitcoin BTC retests $111,000. Nevertheless, macro uncertainty and sticky inflation mean the trend is far from certain. The total market capitalization of Bitcoin BTC has rebounded by 4%, with sentiment tending towards neutral. However, the CPI inflation report is set to be released on October 24, and the FOMC meeting is imminent, with economists generally expecting inflation to continue to rise to 3.1%. Mainstream CEX founder CZ predicts that the market capitalization of Bitcoin will surpass gold's $30 trillion, implying that the price of Bitcoin will exceed $1.5 million.

Macroeconomic Challenges: CPI and FOMC Cast Shadows on the Path to ATH

Macroeconomic shocks continue to test the bullish fundamentals of Bitcoin BTC in the fourth quarter.

· Key data approaching: The U.S. Bureau of Labor Statistics (BLS) will release the Consumer Price Index (CPI) report on October 24, which is particularly unfavorable for risk assets as it is only five days before the FOMC meeting.

· Inflation expectations rise: Given the ongoing inflationary pressures and the lingering effects of the China-US trade war, economists generally expect the CPI to increase by 3.1% year-on-year, higher than last month, indicating that the market anticipates prices will continue to climb.

· Catalyst Disappears: The key catalyst that previously drove Bitcoin BTC to surge to $125,000—the market's expectation of a weak labor market, thereby leaving room for the Federal Reserve to cut interest rates at the next FOMC meeting—no longer exists, and inflation remains sticky.

Market Positioning: Whales rush ahead of the bulls, but volatility will intensify.

Despite the uncertainty in the macro environment, the market positioning of Bitcoin BTC shows a bullish tendency, with whales jumping ahead of the next bullish trend. It is worth mentioning that most trading platforms now support using Google Pay to buy Bitcoin, making the process simple and secure. Newcomers can refer to the step-by-step purchasing guide: register, verify identity, bind payment, place an order to buy, and transfer BTC to the wallet to complete the entire process.

· Derivatives Bullish: The perpetual contract market tends to be bullish, and leverage is accumulating. This means that market participants expect prices to rise further.

· Lessons from the last rate cut: The September rate cut by the Federal Reserve had a negligible impact on the price of Bitcoin BTC. In the week following the rate cut, the price of Bitcoin BTC fell by 8% due to a 0.2% month-on-month increase in inflation. This indicates that even if the Federal Reserve cuts rates again, risk assets may not necessarily receive a clean bullish boost.

With the intensifying market volatility, many investors are starting to consider when to sell Bitcoin. During market rebounds or liquidity recovery, some traders may choose to convert Bitcoin into cash or withdraw it to their bank accounts.

· Limitations of price discovery: Although Bitcoin BTC has broken through $125,000 to set an ATH, the lack of follow-through momentum and fear sentiment keep the bulls on the sidelines, with momentum gradually fading. Under the current setup, Bitcoin BTC's push towards price discovery may encounter a ceiling.

· High-risk settings: The increase in leverage and the accumulation of liquidity clusters may make the process of Bitcoin BTC rushing towards ATH chaotic. The next few days will be a “high-risk” breakout or failure setting, with momentum currently leaning towards a breakout.

Industry Outlook: Bitcoin market capitalization will surpass gold

The founder of the mainstream CEX, CZ, predicted on platform X that the market capitalization of Bitcoin BTC will surpass the 30 trillion dollar market capitalization of gold, implying that the price of Bitcoin will exceed 1.5 million dollars per coin.

· Current Comparison: Bitcoin BTC is currently priced at approximately $110,500, with a market capitalization of about $2.19 trillion. Meanwhile, gold has reached a record of $4,374 per ounce, driven by geopolitical tensions and inflation concerns.

· Market reaction: The post sparked optimistic sentiment about Bitcoin BTC adoption, while also accompanied by questions regarding its volatility compared to the stability of gold.

Conclusion

Bitcoin BTC price has shown resilience in the short term driven by short positions squeeze and Spot demand. However, the upcoming CPI data and the subsequent FOMC meeting this week keep macro risks high. Despite whales actively taking long positions, inflation stickiness and market leverage accumulation suggest that Bitcoin BTC's path to ATH in November will be fraught with volatility, and investors need to closely monitor the impact of macro data on the Federal Reserve's decisions.

Disclaimer: This article is for news information and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make cautious decisions.