Bitcoin (BTCUSD) rebounded 3% on Monday, climbing back above the $111,000 mark following a 6% decline last week. The recovery marks a three-day winning streak for the cryptocurrency, signaling renewed investor appetite for riskier assets amid expectations of a more accommodative monetary policy.
Market Drivers
- Fed Rate Cut Expectations: Investors are closely watching Friday’s U.S. inflation data, with September’s CPI forecasted at 3.1% year-over-year. A softer-than-expected reading could pave the way for another 25-basis-point rate cut at the Federal Reserve’s October 28–29 meeting, boosting risk assets like Bitcoin.
- US Government Shutdown Nearing End: White House economic adviser Kevin Hassett indicated that the three-week government shutdown is likely to conclude this week, which would restore the flow of key economic data, including jobs reports, providing further clarity for markets.
Together, these developments are driving traders to increase Bitcoin positions in anticipation of cheaper liquidity and expanded risk appetite.
Ethereum Also Recovers
Ethereum (ETHUSD) mirrored Bitcoin’s rebound, climbing back above $4,000 after dipping as low as $3,673 on Friday during last week’s market selloff. The cryptocurrency rally reflects broader optimism in digital assets as investors reposition ahead of major economic catalysts.
Key Takeaways
- Bitcoin: +3%, reclaiming $111,000
- Ethereum: back above $4,000
- Catalysts: Softer inflation data could secure Fed rate cut; US government shutdown nearing end
- Market sentiment: Renewed risk appetite among traders ahead of key economic events
The recovery in Bitcoin and Ethereum underscores how macro developments, including monetary policy and government operations, remain major drivers of cryptocurrency market movements. Investors are positioning for potentially more favorable conditions for risk assets in the weeks ahea