Huge Week for Crypto Markets: Fed Rate Call, ETF Approvals, Trump–Xi Summit

The crypto markets remained on edge this week as investors brace for major events that may determine the future trajectory. The Bitcoin price was stuck above $115,000, while Ethereum was trading above $4,100. This article explores some of the top crypto market news to watch this week.

Crypto Markets to React to Altcoin ETF Approvals

The first major big event in the crypto market this week is the approval of several altcoin exchange-traded funds, even as the US government shutdown continues.

The first altcoin ETF to start trading will be Canary Litecoin ETF (LTCC) and the Canary Hedera ETF (HBR). Additionally, the Bitwise Solana ETF will launch on Tuesday, while Grayscale will convert its Solana Trust into an ETF on Wednesday.

The approval of these funds means that the agency is likely to approve other ETFs, such as XRP, Avalanche, Chainlink, and Binance Coin, making them available to most institutional investors.

Existing data indicate a demand for these coins, which investors believe are liquid alternative assets. For example, data compiled by SoSoValue shows that the existing spot Bitcoin ETFs have had over $64 billion in inflows since their inception. BlackRock’s IBIT has experienced cumulative inflows of $65 billion and currently holds $92 billion in assets.

Another data shows that spot Ethereum ETFs have had over $14 billion in cumulative inflows, giving them total assets to over $28 billion.

Other spot ETFs of coins, such as XRP and Solana, have experienced substantial inflows. The recently launched REX-Osprey XRP ETF has raised over $100 million in less than a month.

Federal Reserve Interest Rate Decision to Impact the Cryptocurrency Market

The other notable crypto market news this week will come from the United States, where the Federal Reserve will conclude its two-day meeting on Wednesday.

This meeting takes place amid the ongoing US government shutdown. It also comes after a report released on Friday showed that the headline Consumer Price Index (CPI) rose from 2.9% in August to 3.0% in September, lower than the median estimate of 3.1%.

Another closely watched data point shows that core inflation, which excludes volatile food and energy prices, dropped from 3.1% to 3.0% in the same period.

Inflation still remains above the Federal Reserve’s 2.0% target. However, the fact that it has not jumped at a faster pace like analysts were expecting has boosted the odds of cuts. Polymarket data shows that the odds of a cut have jumped to 98%.

Federal Reserve interest rate cuts are typically bullish for the cryptocurrency market and other high-risk assets. However, there is a risk that a sell-the-news situation could arise, as the price has already been factored in.

Donald Trump and Xi Jinping Meeting

Another significant event in the crypto markets is Thursday’s meeting between Donald Trump and Xi Jinping at the APEC Summit in South Korea.

This meeting aims to address some of the key issues affecting the two largest economies globally.

There is optimism that the two sides will reach an agreement in this meeting, following the development of an outline for a deal by their negotiators.

Scott Bessent noted that China had agreed to help curtail fentanyl materials exports to the United States, meaning that Trump may remove the existing fentanyl-related tariffs.

China has also committed to delay its rare earth materials export controls by a year and to restarting purchases of US soybeans.

A US-China deal would be bullish for the crypto market by removing one of the biggest headwinds in the financial market this year. Additionally, it would make it easier for the Federal Reserve to continue cutting interest rates by mitigating current inflation risks.

Still, like the Federal Reserve decision, there is a risk that the Trump-Xi meeting will be a sell-the-news event as the market already knows that a deal has been reached.