Haciyev Reşit 
Following two consecutive weeks of steep declines, Bitcoin started the new week trading above $110,000. Ahead of the CPI data and the Fed’s interest rate decision, optimism dominates the markets. The cryptocurrency market made a positive start to the week, with Bitcoin (BTC) rebounding above $110,000 after suffering sharp Friday sell-offs for the past two weeks.
The largest cryptocurrency is once again testing a strong psychological resistance zone as investors turn their attention to Friday’s upcoming U.S. CPI data and next week’s Federal Reserve interest rate decision.
Bitcoin Gains Strength Above $111,000
Roughly two weeks ago, Bitcoin had dropped to as low as $102,000 on a Friday before stabilizing through short recoveries. However, after retreating again to around $103,500 three days ago, BTC rebounded over the weekend due to strong buying activity, climbing back to the $111,000 range.
Market analysts emphasize that this recovery is “linked to the strengthening expectations of an interest rate cut.”
Critical Week Ahead of CPI and Fed Decision
The delayed U.S. Consumer Price Index (CPI) data for September will be released on Friday, October 25. Due to the government shutdown, the data was postponed, and headline inflation is expected to come in at 3.1%.
The September inflation report holds critical importance ahead of the U.S. Federal Reserve’s (Fed) interest rate decision next week. Even if inflation figures come in above expectations, markets are still pricing in a potential rate cut rather than an increase.
Gold and Silver Also on the Rise
After sharp declines on Friday alongside Bitcoin, gold and silver started the new week with a strong recovery. Gold surpassed $4,250, while silver climbed above $52, marking a solid start to the week. This rebound signals that investors are turning back to safe-haven assets amid ongoing uncertainties around inflation and interest rate policies.
U.S.–China Talks Dominate Market Agenda
Another key factor influencing price movements in the crypto market is the ongoing U.S.–China trade negotiations, which will continue this week in Malaysia. Former U.S. President Donald Trump stated that the current tariffs are unsustainable, while emphasizing that China should ease restrictions on rare earth elements.
Trump also pointed to November 1 as a new turning point, noting that he and Chinese President Xi Jinping are expected to meet next week in South Korea. Any signal of a potential trade agreement emerging from this meeting could significantly impact both global markets and crypto assets.
A Defining Week Begins for Bitcoin
This week will be crucial for Bitcoin, as it navigates the combined effects of CPI data, the Federal Reserve’s interest rate decision, and geopolitical developments. Markets are currently building a positive outlook, driven by expectations of a rate cut. If the upcoming data supports these expectations, Bitcoin could once again test levels above $115,000.
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