TLDR:
- The Fed’s expected 25 bps rate cut could mark the start of a wider policy easing cycle for risk markets.
- Ending Quantitative Tightening would stop liquidity drain, historically a bullish signal for crypto and equities.
- Strong earnings from Big Tech firms could reinforce market confidence and lift correlated crypto prices.
- A potential U.S.–China trade agreement could ease inflation risks and restore cross-border liquidity flows.
This week may decide how money moves for the rest of the year. The Federal Reserve’s meeting, major tech earnings, and a key U.S.–China trade discussion are all packed into one window.
Each event could alter the direction of liquidity, rates, and risk appetite across markets. Investors in both stocks and crypto are watching closely. Analysts say the mix of policy signals and corporate data may quietly start a new cycle of support for risk assets.
The post shared by Bull Theory on X framed this week as the “most important of Q4.” The account pointed to four market forces: rates, liquidity, earnings, and trade. Each, it said, could play a major role in how capital flows before year-end.
Fed Rate Cut and QT Signals Could Move Crypto Prices
The Federal Reserve meets on Wednesday, with a 25-basis-point rate cut already expected by traders. But according to Bull Theory, the real story lies in what Chair Jerome Powell says next.
Investors are waiting to see if this is a one-time cut or the start of a deeper easing path. If Powell hints at slowing Quantitative Tightening, it would mark a big shift. Ending QT means the Fed stops pulling liquidity from the system, a move that often supports risk assets.
Market watchers believe that’s when yields could fall, the dollar could ease, and liquidity might flow back into equities and crypto. Traders often treat these policy pivots as turning points.
Every bull cycle begins when central banks shift from restraint to support, Bull Theory added. If Powell’s tone signals that shift, crypto could be among the early beneficiaries.
Tech Earnings and Trade Talks Could Boost Market Confidence
Just hours after the Fed decision, earnings from Microsoft, Alphabet, and Meta will hit the market. Apple and Amazon follow the next day. Together, these companies make up roughly 20 percent of the S&P 500.
Stronger reports from Big Tech could drive a short-term rally across equities. Historically, when stocks rise after strong earnings, crypto prices often move with them. Traders say better results from tech leaders could reinforce a risk-on mood just as the Fed turns dovish.
Later in the week, attention shifts to geopolitics. President Trump and China’s President Xi are expected to meet to discuss trade. Reports suggest both sides could reach a preliminary deal that reduces tariffs and opens liquidity channels.
If confirmed, that would reduce inflation pressure and improve the backdrop for global assets, including crypto. The sequence is clear: rate cuts, QT easing, strong earnings, and trade progress.
Together, they point toward one thing, liquidity expansion. And for crypto traders, that’s often when the next leg higher begins.
The post Here’s Why This Week Could Reset the Crypto Market for the Rest of 2025 appeared first on Blockonomi.
Source: https://blockonomi.com/heres-why-this-week-could-reset-the-crypto-market-for-the-rest-of-2025/