From Fed to FAANG – Can Bitcoin survive this week’s macro overload?

Key Takeaways

Will robust Q3 earnings pull threat capital away from the crypto market?

Equities are absorbing flows for now, leaving the crypto market and Bitcoin’s breakout on maintain.

Can the market maintain its bullish tone amid macro volatility?

Sentiment stays optimistic, however worth discovery hinges on how threat property commerce this week.

The race to draw capital amongst threat property is kicking off.

This week is marked by macro occasions, from potential fee cuts to the U.S.–China assembly. On prime of that, main earnings are about to drop, and we’re already seeing stable inflows into the U.S. equities.

So, the query now could be whether or not it will divert threat capital away from the crypto market, capping Bitcoin’s [BTC] transfer into worth discovery.

Every part that may transfer markets is occurring this week

Crypto will open in November on a risky footing.

A protracted U.S. authorities shutdown — now nearing 30 days — has saved macro sentiment uneasy. Nonetheless, a “softer-than-expected” CPI print flipped the change to risk-on, pushing merchants again into equities and digital property.

Consequently, positioning is popping bullish forward of the FOMC on the twenty ninth of October. Including gasoline to the transfer, President Trump’s upcoming assembly with President Xi has traders leaning much more risk-on.

Supply: X

In brief, the crypto market stays effectively bid going into the latter half of This autumn.

Backing this up, the TOTAL crypto market has ripped almost 20% off the post-crash lows, including roughly $610 billion in below three weeks. Notably, BTC captured 40% of these inflows, suggesting this rally is “market-led.”

That stated, BTC’s path towards worth discovery nonetheless lacks construction. 

With key macro headlines set to drop this week, investor threat urge for food is prone to swing as merchants react to contemporary knowledge. Towards this backdrop, the query is, will traders keep the course in crypto, or begin fading threat?

Earnings season checks crypto market’s threat premium

Earnings season is formally underway.

Between the twenty seventh and the thirty first of October, mega-cap names (Microsoft, Google, Meta, Apple, and Amazon) are set to drop their Q3 earnings. Collectively, that’s roughly $15.2 trillion in market cap reporting inside a single week.

Notably, flows have stayed risk-on. Nasdaq is up 4.35% MTD, roughly 3.5x BTC’s acquire.

Plus, the S&P500 has tacked $3 trillion+ in market cap because the tenth of October low, marking some of the profitable runs on document.

Supply: TradingView (NASDAQ)

Merely put, the U.S. equities proceed to outperform crypto on a relative foundation.

Towards this backdrop, robust Q3 earnings are prone to hold cash flowing into shares, particularly as investor sentiment swings with this week’s headlines. A possible fee reduce may enhance these inflows much more.

That leaves the crypto market heading right into a key week. 

Sentiment remains to be optimistic and BTC stays effectively bid, however a breakout into worth discovery will depend upon how broader threat property commerce. For now, capital appears extra desirous to chase momentum in equities than in crypto.