A Crucial Week for Crypto: Trump–Xi Talks and Fed Move in Focus
Key Points
- This week is pivotal for crypto, as the market is surrounded by key factors like the Trump–Xi summit in Seoul and the U.S. Federal Reserve’s rate decision.
- Bitcoin price surged to a two-week high after the possible de-escalation of trade tension between the United States and China.
- Donald Trump and Chinese President Xi Jinping will meet on October 30th in Seoul. This meeting is likely to end the trade war, signaling a boost for the crypto and stock markets.
- The Trump–Xi summit and Federal Reserve’s rate decision news escalated the crypto market and led to a positive outlook with strong projected growth and institutional involvement.
The final week of October will be crucial for the cryptocurrency market, with global attention on the Trump–Xi summit in Seoul and the U.S. Federal Reserve’s rate decision.
According to the latest market analytics, the crypto-related stocks gained ground on Monday after the United States President Donald Trump and Treasury Secretary Scott Bessent confirmed that the US-China trade talks are in the initial stage and the presidents of both countries will meet in person on October 30th in Seoul.
Mainstream media China Daily reported that China and the United States had reached a “preliminary consensus” on key issues, including tariff suspension, trade in agricultural products, and export controls, after two days of “constructive” trade talks in Malaysia over the weekend.
#China and the United States have reached "preliminary consensus" on key issues, including #tariff suspension, #trade in agricultural products and export controls, after two days of "constructive" trade talks in Malaysia over the weekend. #US https://t.co/5F9PoXVRVL pic.twitter.com/RWUucE92Xu
— China Daily (@ChinaDaily) October 27, 2025
U.S. Federal Reserve Rate Decision
The U.S. Federal Reserve is expected to cut its federal funds rate by 0.25% on Wednesday. The Labor Department has released a key report ahead of the interest rate cut meeting, and the report showed that the inflation rate had risen by 3% last month, which is cooler than they previously expected.
The media reports that the softer inflation report from the Labor Department will lead to a rate cut on Wednesday. Scott Helfstein, Global X’s head of investment strategy, told CBS News that concerns about tariffs driving prices higher were still not showing up in most categories and that nothing in the inflation print should stop the Fed from cutting rates the following week. He added that the prices were higher, but not enough to prevent them from helping the economy.
Trump–Xi summit and the U.S. Federal Reserve Interest Rate Cut: A Crucial Week for Crypto
The Trump–Xi summit, scheduled on October 30, and the U.S. Federal Reserve interest rate cut this week will play a pivotal role in shaping the upcoming crypto market’s momentum. Both these factors will have a major role in driving the market sentiment, volatility, and worldwide trading strategies.
The mainstream media reports that the crypto-related stocks gained significant momentum after President Donald Trump confirmed his meeting with Xi Jinping at the APEC conference in Seoul. A U.S Federal Reserve interest cut will be good for the crypto market and boost the crypto market by increasing liquidity and weakening the dollar, promoting risk-on investing.
The market experts believe that if the trade tensions between the US and China de-escalate, the crypto market is expected to get a renewed risk appetite, sparking bullish momentum for prominent cryptocurrencies such as BTC, ETH, XRP, and DOGE. If the trade talks lead to a new trade escalation or renewed tariff impositions, crypto traders will anticipate a defensive sell-off, which will lead to the cryptocurrency market’s downtrend. Assets like BTC and ETH will undergo a significant price correction with a failed trade talk, but are likely to sustain volatility and fluctuating momentum with a neutral or inconclusive outcome.
Institutional Inflows and Market Performance
Prominent analyst CryptOpus explained that the crypto market cap had soared 3.3% to $3.99 trillion, with most top coins rallying as institutional inflows hit $921 million that week, led by softer US inflation data and growing rate cut expectations ahead of Wednesday’s Fed decision.
#Crypto Summary
— CryptOpus (@ImCryptOpus) October 27, 2025
27.10.2025
➡️Crypto Market Cap Soars 3.3% to $3.99 Trillion
Most top coins rallied as institutional inflows hit $921 million this week, led by softer US inflation #data and growing rate cut expectations ahead of Wednesday’s Fed decision. ➡️Bitcoin Breaks… pic.twitter.com/flJN3JClLE
He noted that Bitcoin had broken $115,500, setting a new Q4 high, with BTC flashing gains of 3.4% and reaching $115,583 as ETF inflows rebounded. He also mentioned that spot and derivatives trading volumes had risen sharply, and $931 million had poured into Bitcoin funds, showing revived institutional interest. Additionally, he stated that Ethereum had surged 6.1% to $4,161 as whales accumulated.
October’s final week is big for crypto markets as it awaits key events like the FOMC meeting (Tuesday), Fed rate cut decision (Wednesday), US-China APEC meeting (Thursday), and Core PCE inflation data analysis (Friday).
Crypto & Blockchain Expert