Crypto market news this week: Top catalysts for Bitcoin, altcoins

The crypto market had a mixed performance last week as Bitcoin and most altcoins retreated, and some, like Bittensor, Ethena, Morpho, and Conflux jumped.

Cryptocurrency prices will react to several major events this week, including the US inflation report, the Fourth Plenum of China’s CCP, and the upcoming talks between US and Chinese authorities.

Crypto market to react to U.S. inflation data

Crypto prices were mixed last week, despite some Federal Reserve officials, including Chairman Jerome Powell, delivering dovish statements. Most of them were supportive of interest rate cuts, which they believe are needed as the labor market deteriorates.

The main risk the central bank faces is that inflation has remained stubbornly high due to President Donald Trump’s tariffs. 

Therefore, the crypto market will react to the upcoming U.S. inflation report, which the Bureau of Labor Statistics has committed to releasing despite the government shutdown — the third-longest in U.S. history.

Economists expect the data to show that the headline Consumer Price Index rose from 2.9% in August to 3.1% in September. Core inflation, which excludes the volatile food and energy products, is expected to rise to 3.2%.

In theory, the crypto market is likely to resume its downtrend if the inflation report falls short of expectations. A higher inflation figure than expected will put pressure on the Fed in its meeting next week.

China Fourth Plenum meeting

Another potential catalyst for the crypto market will be a significant political gathering in China. Known as the Fourth Plenum, this gathering will have officials review the country’s 15-year plan. 

Historically, these events have had an impact on the broader financial market. While the meeting has previously avoided mentioning cryptocurrencies, there is a slim chance that officials will do so this week. Besides, the US, its rival, has implemented a series of positive crypto regulations. 

Officials may also discuss cryptocurrency as part of globalizing the yuan. One approach may be to promote the digital yuan or even yuan-based stablecoins. 

China-US meeting on trade

The crypto market crashed on Oct. 11 after Trump threatened to impose a 130% tariff on Chinese goods. This statement followed China’s unveiling of a series of measures, including investigations into Qualcomm and restrictions on rare earth mineral exports. 

These trade issues have contributed to the ongoing volatility in the cryptocurrency market. Therefore, traders will focus on the upcoming meeting between U.S. and Chinese officials in Malaysia. Signs of a deal between the two sides will be a positive development for cryptocurrencies.

The other potential crypto market news this week will be the ongoing earnings season in the US and the top token unlocks, including Avalanche, TON, and LayerZero.