Bitcoin (BTC) struggled to gain momentum above $61,000 during early Thursday trading, as several headwinds—including rising inflation and the impending sale of thousands of Silk Road BTC—put significant pressure on the cryptocurrency market.

The September Consumer Price Index (CPI) report indicated a higher-than-expected inflation rate, rising by 0.2% compared to the anticipated 0.1%. The indicator also exceeded expectations with a year-over-year increase of 2.4%, as opposed to the projected 2.3%.

The core CPI, which excludes more volatile food and energy costs, followed suit. In September, the index rose by 0.3%, surpassing the forecast of 0.2%, while the core CPI increased by 3.3% year-over-year, compared to the expected 3.2%.

Although the CPI was higher than anticipated, it was only slightly above economists' projections, implying that its impact on the expectations for a rate cut in November would be minimal. The CME Group's FedWatch tool now stabilizes the likelihood of the Federal Reserve maintaining interest rates at 13%, down from yesterday's 19%, while the possibility of a 25 basis point rate cut stands at 87%.

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Data provided by TradingView showed that Bitcoin climbed to a high of $61,277 before the CPI release but reversed course after the print results were announced, retesting the support level at $60,400.

In the past few days, the bull market has been striving for a sustained rebound, as the threat of another large-scale sale by the U.S. government puts pressure on the market.

The U.S. Supreme Court refused to hear a case involving the ownership of 69,370 Bitcoins, worth $4.38 billion, which were seized from the Silk Road darknet market and are currently held by the Department of Justice.

Battle Born Investments sought a review, claiming it had purchased the rights to the confiscated Bitcoins through bankruptcy assets. The company previously failed to persuade a district court in 2022 and an appeals court in 2023, after acquiring the Bitcoins through bankruptcy claims following the closure of Silk Road in 2013. Last year, an appeals court judge in San Francisco dismissed the case, stating that the company's claims on BTC were invalid.

The Supreme Court's refusal to hear the case opens the door for the government to sell the Bitcoin, which could lead to prolonged weakness and a drop in prices, similar to the situation in July when the German government sold 50,000 Bitcoins on the open market.

Ryan Lee, Chief Analyst at Bitget Research, said in a report, "The U.S. government's sale of 69,370 Silk Road-related Bitcoins could have some short-term and long-term impacts on the cryptocurrency market and Bitcoin prices."In the short term, Li warned that market volatility is expected to intensify, and investors will face psychological pressure. He said, "Large-scale Bitcoin sales like this often trigger market fluctuations." "Especially if they are sold all at once or in a short period of time, market sentiment may be hit by a sudden increase in supply, leading to a wave of selling and a temporary decline in Bitcoin prices."

He added, "Some investors may worry that the influx of these Bitcoins could put downward pressure on prices, especially if they are sold in the open market." "Investors may adjust their positions in advance to avoid risks, which could amplify short-term volatility."

But in the long run, Li said that the market will eventually absorb this additional capacity. He said, "If sold in stages, the market may gradually absorb this batch of Bitcoins. As the Bitcoin market matures, with more institutional investors and hedge funds participating, it may have the ability to handle such sales. If the Bitcoins are effectively auctioned, the long-term price impact may be relatively limited."

Despite increasing headwinds, market analyst Miles still believes that a blowout rebound could occur before the end of 2024.

"After months of consolidation, I believe most people are a bit frustrated with Bitcoin now," Miles wrote in an X update. "However, my view remains that we are approaching the final stage of the bull market, which should be the most unstable upward phase."

He added, "The time to get here is definitely much longer than I expected, but that's the way things are." "Considering the start of the Federal Reserve's rate cut cycle, as well as the positioning of stocks, yields, and DXY, I think it's possible to see $100,000 this year."

What sets his view apart from many analysts is the duration of the bull market. Miles predicts that "the bull market will end abruptly this year, which I don't think is the view of most people. In my opinion, the trap is that the bull market will continue until 2025, driven by the ETF narrative, the Federal Reserve's rate cut narrative, or even Trump's election victory."

He said, "In contrast, in my view, the Federal Reserve's rate cut is a warning signal that the bull market for risk assets is about to end." "However, despite this, I am not attached to a specific timetable, and if we continue to 2025, that's fine too. After all, a bull market is a bull market. Please note that this is not advice, just my written view in this market over the years."At present, Bitcoin is trading at $60,669, down by 2.2% on the 24-hour chart.