Bitcoin Surges, XRP Breaks 200-Day SMA as Fed Rate Cut Approaches: Mag 7 Earnings & Trump-Xi Summit Loom

Markets

What to know:

Major cryptocurrencies trade higher ahead of an expected Fed rate cut on Wednesday.
Powell’s comments on the Federal Reserve’s quantitative tightening program could prove pivotal.
BOJ is likely to keep rates unchanged.
Mag 7’s AI-related spending and Trump-Xi Summit could add to market volatility.

Ah, the sweet smell of financial volatility. Cryptocurrency prices are soaring like a hot air balloon that just discovered a secret stash of helium. A rollercoaster of major events, including the Federal Reserve (Fed) and Bank of Japan (BOJ) rate decisions, and the impending earnings reports from the tech giants known as the Mag 7, have everyone at the edge of their seats, wondering if this is the moment to make it rain-or to jump off the market rollercoaster before it drops. 🎢💸

Fed likely to cut rates

The Federal Reserve is reportedly ready to cut its policy rate by 25 basis points to 4% on Wednesday, marking the 150th time they’ve acted like a generous uncle with a credit card, doling out easings since last September. Some say it’s like an early Christmas present, but others might call it a desperate cry for help. Regardless, the CME Fed funds futures suggest it’s happening with near certainty. On top of that, there’s talk of more rate cuts in December and next year-cue the Bitcoin enthusiasts popping champagne. 🥂

Speaking of Bitcoin, it’s strutting its stuff, up 1.7% over the past 24 hours to a svelte $113,600. After all, it’s been showing some serious muscle lately, winning for three days straight. It seems like Bitcoin has finally gotten fed up with its midlife crisis at the 200-day simple moving average (SMA), currently lounging at $108,800. However, it still hasn’t quite managed to overcome the 50-day SMA at $114,250, which is like the cool kid’s exclusive VIP lounge. Talk about an obstacle. 🏋️‍♂️

Other major players-like ether and solana-are also flaunting some gains, rising 3% in the last 24 hours. But XRP? Well, it’s off to the races, breaking its 200-day SMA at $2.60, looking like it just discovered a secret weapon in the crypto world.

Powell to maintain focus on jobs

Ah, Jerome Powell. The man, the myth, the Fed Chair. All eyes will be on him this Wednesday as he speaks with the elegance of a rockstar at a press conference that promises to be filled with suspense, drama, and absolutely no economic forecasts. Because who needs those, right? 🎤

Powell will likely emphasize that while the job market is showing some weakness, it’s still nothing to panic about-sort of like that uncle who swears he’s “totally fine” while the roof leaks. He’ll likely downplay the ongoing government shutdown too, because if there’s one thing we love, it’s a good ol’ game of “let’s pretend everything’s fine.” 🍿

QT talk

So, what’s next for the Fed’s balance sheet? Well, Powell’s recent comments suggest that quantitative tightening (QT) might be winding down soon, much to the delight of crypto enthusiasts who like their liquidity like they like their coffee-strong and plentiful. However, don’t get too excited; just because QT might stop doesn’t mean we’re all getting a free pass to the money printer. But optimism is free, so take all you can get. 📉

BOJ rate decision

Meanwhile, across the Pacific, the Bank of Japan (BOJ) is expected to keep rates steady-because, you know, why change things when you’re already on a wild ride? But, rumors are swirling about potential cuts in December and early 2026, which could either spark a market rally or set off a series of awkward pauses in investor conversations. Stay tuned! 🍿

Mag 7 earnings

The Mag 7 gang-Apple, Meta, Alphabet, and Microsoft-are gearing up to announce their earnings this week. Expect traders to scrutinize these reports with the intensity of a detective solving a mystery novel, looking for any sign that AI-related spending is slowing down. A slowdown could send the market into a panic, but hey, nothing like a little drama to spice things up, right? 💼

Trump-Xi meeting

In the latest installment of “World Leaders Who Can’t Stop Talking,” President Trump and President Xi Jinping will meet on Thursday, right after announcing that a trade deal is “almost here!” Ah, sweet anticipation. With both sides playing the role of hopeful diplomats, the market’s eager to see if they can actually pull it off. Any misstep here, and it could trigger a market sell-off faster than you can say “trade war.” 🧐

2025-10-26 17:45