If you ignore yesterday's and today's events, you might miss the reversal.
What's coming in the next few hours could turn the entire market:
$BTC , Altcoins, Stocks, everything.
Let's analyze everything happening in the macro and crypto landscape and how it could affect the market 👇
What Happened in the Macro? Fed Data and the Game Changer
The crypto and stock markets are fixated on the Federal Reserve (Fed). Two important macroeconomic data points came out in quick succession, and the reaction to them could be the catalyst everyone is waiting for:
1. Stronger-Than-Expected GDP
Yesterday's updated GDP data came in stronger than expected: 3.8% growth versus 3.3% expected.
• The Upside: This is good news for the economy. The strength suggests resilience and economic health.
• The Crypto Side: It's also the kind of news that gives the Fed room to postpone interest rate cuts, as the economy isn't "cooling" fast enough. As a result, the odds of an October cut slightly decreased...
2. The Fed's Favorite Inflation Indicator: The PCE
Earlier today, the critically important PCE and Core PCE inflation data were released. This is the Fed's preferred inflation gauge.
➤ The PCE was neither above nor below expectations (2.7%). If it had come in lower, we'd have a clear green light for rate cuts. However, the simple fact that it didn't come in higher still keeps the possibility of cuts alive. Liquidity pressure is mounting, and the window for the Fed to act is opening.
Today's Twist: The Fed Speakers
And that's not all. The most crucial part comes next:
❖ Four important Federal Reserve officials are speaking today, including Vice Chair Barr.
Any subtle indication that the Fed is ready to shift policy—even after a neutral PCE—could instantly change market expectations. If they signal that the door to an imminent cut is open, get ready for the rocket.
The Crypto Catalyst: Massive Options Expiry
Now, we turn to crypto. The macro environment is tense, but the mechanics of the crypto market itself add volatile fuel:
Earlier today, $21 billion worth of BTC and ETH options expired.
• ➤ $16 Billion in Bitcoin (Max Pain: $110K)
• ➤ $5 Billion in Ethereum (Max Pain: $3,700)
This is a huge amount of leverage being wiped out in a single day. Options expiry often acts as a market "reset" and can create sudden price swings in either direction, clearing the path for the next big move.
The Perfect Confluence: Uptober is Approaching
All of this is happening just four days before the start of “Uptober,” a historically bullish month for Bitcoin and altcoins. Seasonality reminds us that the fourth quarter is often the strongest for crypto.
So, what do we have now?
✦ A strong economy (resilient GDP).
✦ Growing pressure for the Fed to cut rates (despite the GDP).
✦ A neutral inflation data release (PCE 2.7%).
✦ Key Fed speakers setting the tone (The biggest event of the day!).
✦ Seasonal tailwind beginning in October.
Together, this is the kind of day that doesn't just move charts, it changes entire narratives.
The Verdict: Decision Time
With the neutral PCE number, if the Fed speakers hint at a tilt towards cuts, we could be looking at the starting point of the Q4 rally, in both crypto and stocks. That would be the explosive birth of "Uptober."
If not? Expect more choppy volatility until clarity arrives in November.
But one thing is certain: The events and speeches over the next few hours will decide how the coming weeks unfold. Keep a close watch, as the market's future is being decided right now.
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