Cryptocurrency markets are eyeing a reassuring rally in the coming days following a benign US consumer inflation report. It could also benefit from future Federal Reserve decisions and the meeting between Donald Trump and Xi Jinping.
summary
- The rally in the crypto market came on the heels of the latest US inflation statistics.
- The report was released just days before the Fed announced its interest rate decisions.
- Donald Trump will meet with Xi Jinping next Thursday.
Cryptocurrency market could rise as inflation statistics raise the possibility of a Fed rate cut
Today, October 24th, the cryptocurrency market is on the rise, with Bitcoin (BTC) soaring to $111,300 and the market cap of all coins reaching $3.73 trillion. Some of the top gainers in the industry include Virtuals Protocol, Zcash (ZEC), Aster (ASTER), and Morpho (MORPHO).
The increase came after the Bureau of Labor Statistics released its Consumer Price Index for September. The figures show that the headline CPI rose from 0.4% in August to 0.3% in September. The annual inflation report rose to 3.0% from 2.9%, below the median estimate of 3.1%.
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On the other hand, the closely watched core CPI decreased from 0.3% to 0.2% and from 3.1% to 3.0%. These numbers exceeded analysts’ expectations.
As a result, economists believe the Federal Reserve will move ahead with lower interest rates at its meeting next Wednesday. In Polymarket, the probability of a reduction has increased to 97%.
US CPI inflation was lower than expected in September, with core inflation at 0.2% (a three-month low) and headline inflation at 0.3%.
Currently, the year-on-year comparison is only 3%.
This report makes it very likely that the Federal Reserve will cut interest rates next week. But what will happen next… pic.twitter.com/VpCeb4ARUZ— Mohamed A. Eleriam (@eleriam) October 24, 2025
Cryptocurrency prices do well when the Federal Reserve cuts interest rates. For example, Bitcoin prices soared to record highs earlier this month, weeks after the Fed made its first rate cut of the year.
Meeting between President Trump and Xi Jinping
Another potential trigger for the crypto market could be the meeting between President Donald Trump and Xi Jinping at the upcoming APEC meeting in South Korea.
The talks, to be held next Thursday, are aimed at easing tensions between the two countries and possibly reaching an agreement.
A deal would avoid an escalation of the trade war, which would be good for stocks and cryptocurrencies. For one thing, it reduces the chance of higher inflation.
This comes as both countries have stepped up their rhetoric over the past few weeks. The cryptocurrency market crashed earlier this month after President Trump threatened to impose 130% tariffs on Chinese goods, resulting in $20 billion in liquidations.
China is threatening to implement export controls on rare earth materials. It also launched an investigation into Qualcomm and added tariffs on U.S. ships entering the country’s ports.
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