Crypto Rally Intensifies on Cooler US CPI, Rising Fed Rate-Cut Odds and Easing Trade Tensions
Crypto rally gained momentum after US September CPI data showed cooler inflation, boosting Fed rate-cut expectations. Bitcoin climbed from $111,300 to $112,866, marking a 5% weekly rise, while total market cap jumped 14% to $3.73 trillion.
Leading altcoins outperformed, with ZEC up 17.7%, HYPE up 16.1%, AERO up 11% and VIRTUAL up 6%. The slowdown in headline CPI to 0.3% month-on-month and core CPI hitting a three-month low of 0.2% increased the odds of a December rate cut and end of quantitative tightening, according to ING Bank.
This crypto rally was further supported by President Trump’s Asia tour and the upcoming Trump-Xi meeting at the APEC summit, which could ease US-China trade tensions and reduce market risks.
However, analysts warn the rally could be a dead-cat bounce as Bitcoin faces resistance at its 100-day moving average. Traders will monitor the Fed decision, the APEC summit outcomes and major tech earnings for clues on the rally’s sustainability.
Bullish
The news that US inflation cooled and Fed rate-cut odds rose is bullish for Bitcoin. In the short term, easing CPI data and dovish projections drive buying and push price above resistance, reflected in a 5% weekly gain and total market cap surge. Optimism is reinforced by potential trade tension relief from the Trump-Xi meeting. However, the warning of resistance at the 100-day moving average and risk of a dead-cat bounce suggest possible pullbacks. Long-term, sustained Fed easing and calmer US-China relations could underpin further growth, maintaining a bullish outlook.