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The crypto market is eying a relief rally in the coming days after the mild US consumer inflation report. It may also benefit from the upcoming Federal Reserve decision and talks between Donald Trump and Xi Jinping.
Summary
- A crypto market rally happened after the latest US inflation data.
- The report came a few days before the Fed delivers its interest rate decision.
- Donald Trump will meet with Xi Jinping next Thursday.
Crypto market may rally as inflation data raises odds of Fed cuts
The cryptocurrency market rose today, Oct. 24, with Bitcoin (BTC) jumping to $111,300 and the total market capitalization of all coins hitting $3.73 trillion. Some of the top gainers in the industry are Virtuals Protocol, Zcash (ZEC), Aster (ASTER), and Morpho (MORPHO).
The rally happened after the Bureau of Labor Statistics published the September Consumer Price Index data. This number showed that the headline CPI moved from 0.4% in August to 0.3% in September. The annual inflation report rose from 2.9% to 3.0%, lower than the median estimate of 3.1%.
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Meanwhile, the closely-watched core CPI dropped from 0.3% to 0.2% and from 3.1% to 3.0%. These numbers were better than what analysts were expecting.
As such, economists believe that the Federal Reserve will move forward with its interest rate cuts in the upcoming meeting on Wednesday next week. Odds of a cut rose to 97% on Polymarket.
US CPI inflation was cooler than expected in September, with core inflation at 0.2% (a three-month low) and headline at 0.3%.
Both year-over-year measures now stand at 3%.
This report makes a Federal Reserve rate cut next week highly probable. What happens beyond that, however,… pic.twitter.com/VpCeb4ARUZ— Mohamed A. El-Erian (@elerianm) October 24, 2025
Crypto prices do well when the Federal Reserve is cutting rates. For example, Bitcoin price jumped to a record high earlier this month, a few weeks after the Fed delivered its first cut of the year.
Trump and Xi Jinping meeting
The other potential catalyst for the crypto market will be the upcoming meeting between Donald Trump and Xi Jinping at the APEC meeting in South Korea.
This meeting, which will happen on Thursday next week, aims to reduce tensions between the two countries and possibly reach a deal.
An agreement would prevent the escalation of the trade war, which would be a good thing for stocks and cryptocurrencies. For one, it would reduce the chances of higher inflation.
It comes as the two sides have heightened he rhetoric in the past few weeks. Trump’s threat to add a 130% tariff on Chinese goods led to a crypto market crash and $20 billion in liquidations earlier this month.
China has threatened to implement export controls on rare earth materials. It has also started an investigation into Qualcomm and added tariffs on American ships docking in the country.
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