Crypto Firms Ahead of Fed Decision: Bitcoin Finds Bid, XRP Clears 200-Day Average as ‘Mag 7’ and Trump–Xi Summit Loom

Crypto Markets Climb Ahead of Fed Rate Cut, BOJ Decision, and Big Tech Earnings

Bitcoin and major altcoins advanced on Sunday as investors prepared for a data-heavy week featuring rate decisions from the U.S. Federal Reserve and the Bank of Japan, along with earnings from several “Magnificent 7” tech giants and a key Trump–Xi summit.

Fed Expected to Deliver 25bps Cut

Markets are fully pricing in a 25-basis-point rate cut by the Fed on Wednesday, which would bring the benchmark rate down to 4% — its lowest since early 2024 and a total of 150 basis points in cuts since last September. Futures also imply a similar move in December, extending the easing cycle into 2026.

Bitcoin (BTC) rose 1.7% to $113,600, logging its third straight daily gain. The move follows a rebound from its 200-day simple moving average near $108,800, although it still faces resistance at $114,250, the 50-day SMA.
XRP, Ether (ETH), and Solana (SOL) also advanced about 3% each, with XRP regaining its 200-day average at $2.60, a key technical milestone.

Powell’s Labor Focus, QT Nears End

Fed Chair Jerome Powell is expected to stress labor-market weakness and downplay inflation concerns during his post-meeting remarks. September forecasts project inflation easing from 3% in 2025 to 2.6% in 2026, while unemployment is seen stabilizing near 4.5%.

Powell could also hint that the central bank is nearing the end of quantitative tightening (QT), the balance-sheet reduction program that started in 2022. Bank reserves have dipped below $3 trillion, a level many analysts consider “ample.”
While ending QT wouldn’t mark a return to quantitative easing, it could restore market liquidity and boost risk appetite — a positive backdrop for digital assets.

BOJ, Big Tech Earnings in Focus

The Bank of Japan will release its rate decision Thursday, with no policy change expected but fresh forecasts that could spark yen volatility.
Meanwhile, Apple, Meta, Alphabet, and Microsoft headline this week’s earnings, with traders eyeing AI-related spending as a key driver for market sentiment.

Trump–Xi Summit Brings Geopolitical Relief

Optimism around U.S.–China trade talks also lifted risk sentiment. Officials from both nations said a trade deal was “within reach,” and Presidents Donald Trump and Xi Jinping are scheduled to meet Thursday in South Korea during the APEC Summit.

The easing of tariff tensions has encouraged a rebound in equities and cryptocurrencies alike — but analysts warn that any breakdown in talks could quickly trigger a pullback across risk markets.