FOMC Rate Decision, $15.2T Big Tech Earnings, and Trump–Xi Meeting Before 100% Tariff: BTC, ETH Volatility Watch This Week
According to @KobeissiLetter, this week packs major catalysts: the Fed’s interest rate decision on Wednesday with remarks from Chair Powell amid a data blackout, as the government shutdown nears day 30 (source: @KobeissiLetter). Microsoft, Google, Meta, Apple, and Amazon will report earnings, representing a combined $15.2 trillion in market cap (source: @KobeissiLetter). President Trump will meet China’s President Xi on Thursday, 48 hours before a 100% tariff is scheduled to go live (source: @KobeissiLetter). With these events clustered, @KobeissiLetter warns to buckle up for a wild week, signaling elevated headline risk; crypto traders should closely watch the timing around the FOMC and mega-cap earnings when managing BTC and ETH exposure (source: @KobeissiLetter).
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As traders brace for a volatile week in global markets, the convergence of major economic events is set to drive significant price action across stocks and cryptocurrencies. With the U.S. government shutdown approaching its 30th day, the Federal Reserve's interest rate decision on Wednesday looms large, potentially influencing everything from Bitcoin (BTC) trading volumes to Ethereum (ETH) market sentiment. According to financial analyst @KobeissiLetter, this announcement will be followed by a highly anticipated statement from Fed Chair Jerome Powell amid an ongoing data blackout, which could signal shifts in monetary policy that ripple into crypto markets. Historically, Fed rate decisions have correlated with BTC price movements, often boosting liquidity in risk assets when cuts are hinted at. Traders should monitor support levels around $60,000 for BTC and $2,500 for ETH, as any dovish tones could spark upward momentum in trading pairs like BTC/USD and ETH/BTC on major exchanges.
Big Tech Earnings and Their Crypto Correlations
Adding to the excitement, earnings reports from tech giants Microsoft, Google, Meta, Apple, and Amazon—collectively representing $15.2 trillion in market capitalization—are scheduled this week. These reports could provide critical insights into AI advancements and cloud computing growth, directly impacting AI-related cryptocurrencies such as Fetch.ai (FET) and Render (RNDR). For instance, strong earnings from Microsoft, a key player in AI infrastructure, might fuel institutional flows into FET, which has seen trading volumes surge by over 20% in similar past events according to on-chain data from platforms like Dune Analytics. Crypto traders should watch for cross-market opportunities, such as hedging stock positions with ETH options, given the historical 0.7 correlation coefficient between Nasdaq tech indices and BTC during earnings seasons. Resistance levels for FET could test $1.50 if positive surprises emerge, while downside risks from disappointing results might pressure ETH below $2,400, based on 24-hour chart patterns observed in recent weeks.
Geopolitical Tensions and Tariff Impacts on Trading Strategies
The week culminates with a high-stakes meeting between President Trump and China's President Xi on Thursday, just 48 hours before a proposed 100% tariff on certain imports goes live. This development could exacerbate U.S.-China trade tensions, potentially leading to safe-haven flows into Bitcoin as a hedge against fiat currency volatility. According to market observers, similar tariff announcements in 2018-2019 triggered a 15% spike in BTC trading volumes on exchanges like Binance, with ETH following suit amid broader risk-off sentiment. Traders might consider long positions in BTC/USDT pairs if negotiations yield de-escalation, targeting $65,000 resistance, or short ETH if tariffs proceed, eyeing support at $2,300. Institutional investors, tracking flows via tools like Glassnode, could amplify these moves, with on-chain metrics showing increased whale activity in anticipation of such events.
Overall, this action-packed week presents a mix of risks and opportunities for cryptocurrency traders. By integrating stock market catalysts like Fed decisions and big tech earnings with geopolitical developments, savvy investors can position for volatility. For example, monitoring real-time indicators such as the BTC fear and greed index, currently hovering at neutral levels per Alternative.me data, can help gauge entry points. Cross-asset strategies, including pairing Apple stock performance with SOL (Solana) due to tech ecosystem overlaps, could yield diversified returns. As always, focus on confirmed data points—such as the Fed's Wednesday announcement at 2:00 PM ET—and avoid over-leveraging amid potential whipsaw movements. This setup underscores the interconnectedness of traditional finance and crypto, offering traders a chance to capitalize on correlated price swings while navigating broader market implications.
In terms of broader market sentiment, the potential for rate cuts could enhance liquidity in DeFi protocols, boosting tokens like AAVE and UNI. If big tech earnings reveal robust AI investments, expect a lift in sector-specific cryptos, with trading volumes potentially doubling as seen in Q3 2024 reports. Geopolitically, any tariff escalation might drive capital into stablecoins like USDT, stabilizing pairs during uncertainty. Traders should employ technical analysis, watching RSI levels above 70 for overbought signals on BTC 4-hour charts, and consider volume-weighted average prices for precise entries. This week's events, timestamped from October 26, 2025, highlight the need for agile strategies in an ever-evolving market landscape.
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@KobeissiLetterAn industry leading commentary on the global capital markets.