Analysts have warned that Bitcoin remains vulnerable to a further selloff if the upcoming U.S. Consumer Price Index report shows inflation running hotter than expected. Bitget Research’s briefing noted that an $811 million wave of crypto liquidations in the 24 hours before the CPI release left market-wide open interest at $140.9 billion, a modest 2% decline. Nansen data showed $175.7 million in Bitcoin exchange‑traded fund inflows on October 13, following a period of withdrawals. Bitget Wallet research lead Lacie Zhang highlighted sticky core inflation as a risk that could pressure Federal Reserve policy expectations. She identified $81,000–$82,000 as a key support zone and a sustained breakout above $84,500–$85,000 as a level to watch. Ryan Lee, chief analyst at Bitget Research, said the recent forced selling may have removed some vulnerable positions but had not fully cleared the leverage that could fuel another decline. He added that elevated open interest after a selloff suggests substantial leveraged exposure remains ahead of the CPI data. Lee warned that an inflation surprise could trigger another round of liquidations as traders reassess Treasury yields and Fed policy. The briefing placed the 10‑year Treasury yield around 5.20% and said hotter‑than‑expected inflation could spark further adjustments. Lee also noted that the earlier liquidation wave may have cleared some of the most exposed positions, potentially limiting subsequent selling pressure. Conversely, softer inflation could prompt a sharp rebound if traders rebuild risk exposure and short positions come under pressure. A similar two‑way scenario was discussed on October 12, when BTSE Chief Operating Officer Jeff Mei said stronger inflation could push Bitcoin below $80,000, while a softer reading might support a recovery toward $86,000 or higher. Zhang warned that persistent core inflation, driven by energy spillovers, tariffs or sustained demand, could keep price pressures elevated. She estimated a roughly 77% probability of an October Fed hold and projected headline CPI at 0.5%–0.6% month‑on‑month and 3.6%–3.7% year‑on‑year, with core inflation near 0.2% monthly and 2.4%–2.5% annually. Retail sales excluding autos and gasoline rose 0.28% month‑on‑month and 4.05% year‑on‑year, according to Zhang. She also cited New York Fed President John Williams’ view that further rate increases may not be necessary in 2027. Bitfinex analysts linked inflation readings to the December policy outlook, saying softer core inflation would weaken the case for another rate increase, while firm spending and persistent core inflation would strengthen it. ETF buying has recovered faster than on‑chain demand, according to Nicolai Sondergaard, senior research analyst at Nansen. He noted that Bitcoin ETFs attracted $175.7 million on October 13 after $678.9 million in withdrawals from October 5–9 and a $65.4 million outflow on October 12. Earlier reports documented $484.9 million in withdrawals on October 7, with BlackRock’s IBIT losing $207.7 million, Fidelity’s FBTC shedding $105.1 million and ARK 21Shares’ ARKB recording $101.7 million in redemptions. Across seven days, Solana inflows of about $555,000 and Ethereum inflows of $22,000 remained in net outflow, while Bitcoin‑linked wallets showed mixed flows without clear signs of widespread accumulation. Sondergaard described the activity as “some selective positioning” rather than a market‑wide expression of confidence, and put annual consensus expectations at 3.6% for headline inflation and 2.5% for core CPI. Zhang’s pre‑CPI assessment placed Bitcoin trading around $83,400–$83,500, with initial support at $81,000–$82,000 and a downside reference near the recent $80,400 low. Resistance was seen at $84,000–$84,500, followed by $85,000–$87,000. She said bulls would regain clearer control through a sustained move above $84,500–$85,000 on solid volume, supported by renewed inflows, and that core inflation at or below roughly 0.2% month‑on‑month and easing expectations for further rate increases would be needed for that scenario. The market is watching for the CPI release to determine whether leveraged exposure will be cleared or whether another adjustment will be required.