Three Factors That May Influence Cryptocurrency Markets Next Week
The upcoming week appears moderate on the U.S. economic calendar due to the ongoing government shutdown, with crypto markets riding a wave of enthusiasm after Bitcoin set a new price record.
The cryptocurrency markets have hit record highs with Bitcoin reaching a peak of $125,500 over the weekend. Despite the ongoing U.S. government shutdown, which has now lasted into its third day, both cryptocurrencies and stocks seem largely unaffected.
Recent employment data revealed some weaknesses in the labor market, while the ISM Services index’s decrease points to stagnation, potentially prompting the Federal Reserve to consider another rate reduction soon.
This week will feature more Fed speeches and consumer sentiment reports, yet activities are expected to remain subdued due to the existing government shutdown.
Economic Events from October 6 to 10
History shows most U.S. government shutdowns do not significantly impact the economy, which explains the markets’ calm demeanor.
On Tuesday, the New York Fed will release its inflation expectations report, shedding light on anticipated inflation trends. The inflation rate has risen from 2.3% in April to 2.9% in August, reflecting the ongoing effects of trade tariffs.
The Fed’s minutes from their September meeting will be published on Wednesday, and Fed Chair Jerome Powell will address the public on Thursday.
Notable Events This Week:
- NY Fed Inflation Expectations data – Tuesday
- Fed Meeting Minutes – Wednesday
- Fed Chair Powell Speaks – Thursday
- Consumer Sentiment data – Friday
- Consumer Expectations data – Friday
- September Jobs Report (if the shutdown is resolved)
— The Kobeissi Letter (@KobeissiLetter) October 5, 2025
Cryptocurrency Market Outlook
Early Monday morning in Asia, the cryptocurrency market’s total capitalization reached $4.32 trillion as it held onto weekend gains. Bitcoin hit a record high of $125,500 before retracting to around $124,000. Analysts believe this is just the start of the anticipated ‘Uptober’ rally, expecting prices to rise to $150,000. Ether briefly reached $4,600 but has since fallen to $4,537.
Most altcoins saw minor increases but have started to decline as Bitcoin captures the market’s attention again.
