News Author: Crypto Emergency
The analytical company QCP Capital has released a fresh report, in which it called the current week potentially decisive for the cryptocurrency market. According to experts, upcoming geopolitical events may have a greater impact on Bitcoin than traditional macroeconomic factors.
The leaders' meeting is a key trigger
Analysts note that cryptocurrencies have shown a recovery following constructive trade talks between the USA and China that took place over the weekend. These agreements lay the groundwork for a meeting between US President Donald Trump and Chinese President Xi Jinping, scheduled for October 30. It is expected that the parties may sign a trade agreement capable of setting a short-term trajectory for cryptocurrency movement.
According to QCP Capital, the impact of this meeting may surpass the effect of the Federal Reserve's interest rate decision expected on Wednesday. However, investors' attention is also focused on the potential conclusion of the three-year quantitative tightening program. Any hint of its early termination could support risk assets and enhance liquidity expectations.
Bitcoin awaits a catalyst
Amid uncertainty, Bitcoin continues to trade within a narrow range, remaining close to the levels at the beginning of October. Investors are monitoring the corporate earnings reports of tech giants — Microsoft, Amazon, Apple, Google, and Meta — for market indicators. An additional factor of uncertainty remains the suspension of the US government, which has lasted for 26 days and may extend into November.
Weak results in the stock market may negatively impact sentiments and disrupt Bitcoin's attempt to extend the seven-year tradition of 'October growth.'
Internal risks and changing sentiments
QCP Capital emphasizes that internal issues in the USA are putting pressure on the markets. Due to limited access to macroeconomic data from the Federal Reserve, investors are essentially acting blind. Although expectations for rate cuts are already priced in, the impact of the ongoing budget crisis remains underestimated.
Meanwhile, sentiment indicators in the cryptocurrency market are changing: the bias towards put options has weakened, and positions have become closer to neutral. This indicates a decrease in caution among investors. However, for Bitcoin to confirm a bullish trend, it must overcome the level of $116,000 and close the month above this mark.
