The crypto market entered the final week of October with renewed optimism. Cooling U.S. inflation data, expectations of a Federal Reserve rate cut, and fresh trade talks between Washington and Beijing helped lift sentiment across both traditional and digital assets. Against this backdrop, several headline‑grabbing developments shaped the week.
Market Highlights
Bitcoin traders are bracing for volatility as a record thirty‑one billion dollars’ worth of options are set to expire on October 31. Meanwhile, a well‑known insider whale linked to President Trump closed another short position, pocketing over six million dollars in profit after earlier gains of nearly two hundred million. In Washington, crypto executives met with Senators to discuss the stalled market structure bill, while President Trump shocked the industry by pardoning Binance founder Changpeng Zhao. The news sent BNB and related tokens higher. Not all projects thrived, however, as Kadena announced it would shut down due to unsustainable conditions.
Macro and Traditional Markets
September’s consumer price index rose just 0.3 percent, below forecasts, reinforcing expectations of a twenty‑five basis point rate cut. Analysts also anticipate the Fed will announce an end to quantitative tightening. On the geopolitical front, Trump and Xi are scheduled to meet October 30 following a framework agreement reached at ASEAN. U.S. equities surged on strong earnings, with the S&P 500 up 1.9 percent, the Dow up 2 percent, and the Nasdaq climbing 2 percent to fresh highs.
Crypto Market Performance
Bitcoin rose to one hundred fifteen thousand dollars, gaining 3.5 percent for the week, with inflows of nine hundred thirty‑one million and dominance near sixty percent. Ethereum settled around four thousand one hundred twenty dollars, up 3.8 percent, though it saw outflows of one hundred sixty‑nine million. Altcoins were mixed: AI‑mazing Virtuals Protocol jumped 79 percent, HyperLiquid gained 79.5 percent, Jupiter rose 23 percent, while Kadena plunged more than 70 percent.
Institutional Moves and ETFs
Digital asset products attracted nine hundred twenty‑one million in inflows, with trading volumes above average at thirty‑nine billion. New exchange‑traded funds are launching for Litecoin, Hedera, and Solana. JPMorgan is developing systems to accept bitcoin and ether as loan collateral, while the Federal Reserve is exploring “skinny master accounts” for fintech and crypto banks. Payment giants Zelle and Western Union are piloting stablecoin transfers for cross‑border transactions.
Key Takeaways
Crypto’s rebound is being fueled by macro optimism and growing institutional adoption. Regulatory drama continues to add intrigue, from the pardon of CZ to the stalled U.S. bill. With a record bitcoin options expiry looming, traders should expect heightened volatility as October closes.
