Bitcoin and cryptocurrency markets are entering a week with several events that could influence broader financial markets and crypto sentiment.
Following a significant week in which the Federal Reserve raised interest rates by 25 basis points for the first time in over three years, bitcoin experienced initial weakness, slipping to $75,000 before recovering to close above $80,000.
Federal Reserve in Focus
Although no Federal Open Market Committee rate decision is scheduled this week, the central bank remains prominent with at least eight policymaker appearances planned. Investors will monitor these appearances for signals about how the Fed interprets the previous week's rate increase and whether additional tightening may occur later in 2026.
For bitcoin, the key question remains whether the September hike represents a one-time response to inflation or the start of a broader tightening cycle. Recent Fed projections indicate the central bank expects at least one additional hike in 2026.
Economic Data and Geopolitical Developments
Wednesday will bring preliminary September S&P Global manufacturing and services purchasing managers' index data, providing early insight into US economic performance following the previous week's rate increase. Stronger-than-expected readings could suggest the economy can tolerate tighter policy conditions.
Thursday may prove even more significant from a geopolitical standpoint, with US President Donald Trump scheduled to meet Chinese President Xi Jinping. The meeting will cover longstanding issues including trade, investments, and export controls, with markets watching for signals of either improved relations or increased tensions.
