- Crypto markets have shifted into a holding pattern, with Bitcoin trading near $108,164.
- Traders are awaiting the United States’ key inflation report (CPI), due Friday.
- Hopes are rising for a de-escalation of the US–China trade tensions.
Cryptocurrency markets have entered midweek calm, with Bitcoin and other major digital assets largely unchanged as traders prepare for a pivotal US inflation report and scan for signs of easing in the US–China trade dispute.
Bitcoin is trading around $108,164, slightly higher than Monday but still down about 2% for the week. Ether is changing hands near $3,815.
That stability reflects what analytics firm QCP Capital described as a “narrow-range balance,” a quiet period that may precede sharper moves.
All eyes on the US inflation report
Market attention is now squarely focused on Friday’s Consumer Price Index (CPI) release, the only major US economic print that the ongoing government shutdown will not delay.
In a recent memo, QCP called the CPI “a single anchor” for policy expectations and broad risk sentiment.
The firm noted that a softer-than-expected reading could “re-anchor the soft-landing trade” and support Bitcoin as expectations for looser monetary policy improve.
Hopes for US–China détente grow
Complicating the market picture is the evolving dynamic of the US–China trade standoff.
Sentiment improved after weekend remarks in which President Trump first threatened a massive new tariff wave, then softened his tone, saying “the United States wants to help China, not hurt it.”
That prompted markets to reassess odds: Polymarket traders now put the probability of a tariff deal by November 10 at 77%, while the chance that the threatened 100% tariffs take effect has fallen to just 16%.
Cleaner slate after brutal liquidation washout
This fragile calm arrives only days after a severe marketwide sell-off wiped out nearly $20 billion in leveraged positions.
The massive washout reset the markets and left a cleaner slate for macro traders ahead of the crucial CPI event.
The central question heading into Friday is whether the inflation print will confirm the “soft‑landing” narrative or reignite the volatility that defined markets last week.
What to watch in the markets
On Bitcoin, analysts at Standard Chartered noted that while sellers are capping immediate breakout potential, a drop below $100,000 could represent a “last chance to buy” before the next major rally.
The outlook for Ethereum is more divided.
A recent $650 million transfer from the Ethereum Foundation triggered profit-taking and a wave of liquidations, leaving analysts split between a potential $5,000 breakthrough and a slide toward $2,850 if the key $3,470 support level does not hold.