Crypto markets are rebounding after last week’s financial decline, but analysts warn of ongoing macroeconomic risks. A Senate vote to reopen the U.S. government sparked gains in crypto, gold, and equities. Market sentiment is optimistic, predicting a 96% chance of the shutdown ending before November 15. However, analysts caution that the rebound may be short-lived.

The recovery is fragile due to concerns like the government shutdown, U.S.-China tariff tensions, and credit market volatility. Bitcoin’s dip to $103,000 on Tuesday was influenced by broader risk-off sentiment and profit-taking. Official data releases are paused, but private data is driving policy-making narratives. Thursday’s inflation data is crucial for market tone.

Intraday volatility is expected as Bitcoin’s price is influenced by institutional accumulation and headline-driven liquidity shocks. Traders are eyeing the upcoming U.S. inflation print for market direction. Despite uncertainty, potential Fed cuts and strong corporate earnings may support risk sentiment and Bitcoin into year-end. Users on Myriad predict a 28% chance of two Fed rate cut changes in 2025.

Read more at Yahoo Finance: Crypto Markets In Short-Term Reprieve, Risks Remain: QCP