Bitcoin, Ethereum and XRP traded higher on Wednesday as investors weighed a fresh batch of big technology earnings and a Federal Reserve decision that could shape expectations for rates. While trading momentum in cryptocurrencies improved, analysts said the market is still awaiting clear confirmation from both corporate results and monetary policy guidance.
Key takeaways
- Price move: Bitcoin traded back above its key short- and medium-term moving averages, while Ethereum consolidated and XRP extended its rebound.
- Catalyst: Investors are monitoring Microsoft and Alphabet’s third-quarter results on Wednesday, with Amazon due on Thursday, alongside the Fed’s expected rate decision.
- What to watch: Guidance on inflation and the timing of potential rate cuts is seen as the more meaningful trigger for broader risk sentiment and crypto follow-through.
- Implication: Crypto’s recovery remains vulnerable to renewed selling if earnings disappoint or if the Fed’s stance appears less supportive for near-term risk assets.
What drove the move
Crypto prices were marked higher as market participants prepared for earnings from major U.S. technology firms that are closely tied to the artificial intelligence infrastructure buildout. Microsoft and Alphabet are scheduled to report third-quarter results on Wednesday, followed by Amazon on Thursday.
Investors are looking for signals on whether current demand and spending plans can justify elevated valuations in the hyperscaler segment. Strong results could help stabilize sentiment around AI-related equities, which can support broader demand for risk assets, including cryptocurrencies. Weaker-than-expected performance, by contrast, could extend an AI-driven equity selloff and weigh on the recovery in digital assets.
On the macro side, the Federal Reserve is expected to hold rates steady later in the day. Analysts said the decision itself appears largely priced in, but guidance around inflation and the outlook for rate cuts could still move markets—especially as institutional participation has increased Bitcoin’s sensitivity to macroeconomic signals.
Vik Sharma, CEO of Cake Wallet, said in an email to Invezz that “a hold on October 28 is essentially priced in,” adding that the guidance would be the key catalyst. He noted that any indication rate cuts are further away could pressure risk assets in the short term, while reassurance that inflation is under control could improve conditions for Bitcoin.
Market reaction across Bitcoin, Ethereum and XRP
Bitcoin strengthened, trading at roughly the $80,846 area and moving back above its 50-day, 100-day and 200-day exponential moving averages, a technical development that typically supports a constructive longer view if sustained.
Ethereum, meanwhile, was consolidating between key moving averages, suggesting the market is still waiting for a clearer directional shift. XRP extended its rebound after finding support near $1.300 earlier in the week, indicating buyers had defended that area but still may need additional momentum to broaden the recovery.
Bitcoin’s technical picture: support holds, momentum still muted
Bitcoin’s nearest support sits near the 50-day EMA at about $80,810. Maintaining levels above this average is important for preserving the current recovery. However, the proximity between price and the moving average leaves the breakout vulnerable if buyers fail to build stronger follow-through.
If Bitcoin were to slip below the 50-day EMA, attention would likely shift to the 100-day EMA near $77,810, followed by the 200-day EMA around $76,394. A sustained move under those longer-term averages would weaken the broader technical structure and raise the risk of a deeper pullback.
Despite the improved positioning versus key averages, momentum indicators remain subdued. The relative strength index was near 46, below the neutral 50 level, implying buying strength has not fully returned. The moving average convergence divergence indicator also remained negative, suggesting the recent rebound has not yet displaced underlying bearish momentum.
Traders therefore appear to be treating the current uptick as conditional. Further weakness in market confidence—particularly if the upcoming earnings results fail to meet expectations—could translate into renewed pressure on Bitcoin and other risk-sensitive assets.
What analysts are watching next
Analysts highlighted $85,000 as the next significant upside barrier for Bitcoin. A daily close above that level would strengthen the case for a sustained recovery and could open room for additional upside. Until then, market participants may focus on whether Bitcoin can first establish a more durable position above the 50-day EMA.
Investors will likely weigh two immediate questions: whether big tech results reduce uncertainty around AI spending and demand, and whether the Fed’s communication supports the idea of a manageable inflation path that keeps rate-cut expectations intact.
Next up for markets are the third-quarter reports from Microsoft and Alphabet on Wednesday, followed by Amazon on Thursday, along with the Federal Reserve’s rate decision and guidance on inflation and the timing of potential cuts. Crypto traders will be watching how equities react to earnings and whether the Fed’s message reinforces or challenges expectations for a more supportive macro backdrop.
