The Eurozone unemployment rate stayed steady at 6.3% in September, matching predictions. The European Central Bank is likely to keep interest rates steady for the third time in a row. The cryptocurrency market made a slight recovery as trade tensions between the US and China eased. Bitcoin, Ethereum, and XRP saw an almost 1% increase on Thursday, making up for losses earlier in the week.

Bittensor’s Rising Trend

Bittensor (TAO) has been on a rise for six consecutive days, approaching $450. This follows plans by Deutsche Digital Assets and Safello to launch a staked TAO ETP on the SIX Swiss Exchange in November. In other market news, the EUR/USD pair stayed around 1.1600 due to a weak US Dollar. However, GBP/USD struggled to hold above 1.3200. Gold showed small signs of recovery but remained below $4,000 after prior losses amid reduced trade tensions. With Eurozone unemployment at 6.3% and the European Central Bank signaling it will keep rates unchanged, we do not anticipate major policy changes. This stability follows an aggressive cycle of rate cuts that started in late 2024, and the market has already adjusted for this pause. For those trading derivatives, it may be wise to sell volatility on European indices since options premiums could lose value without a significant event. The EUR/USD is establishing a floor around 1.1600, a level it has not consistently held since 2022, largely due to a weaker dollar. Recent US job data showed wage growth slowing to 2.8% year-over-year. This indicates that the Federal Reserve may have more flexibility to ease policies compared to the ECB. Traders may want to consider a range-bound strategy using iron condors on the currency pair to take advantage of this period of adjustment.

Crypto Market’s Cautious Recovery

The crypto recovery is cautious, driven more by easing geopolitical fears than by new investments. We saw a similar 1-2% relief rally in the summer of 2024 that quickly collapsed, making this current move feel delicate. Buying protective puts on Bitcoin or Ethereum futures during this slight price increase could be a smart way to hedge against the possibility that the Trump and Xi meeting produces no lasting agreement. Bittensor’s rise towards $450 appears to be a typical “buy the rumor” scenario ahead of its scheduled ETP launch next month. Historically, similar crypto ETP launches often lead to a “sell the news” reaction; data from early 2025 revealed an average price drop of 12% in the two weeks post-launch. Traders might consider buying November put options to prepare for a potential pullback once the product is active. Gold’s struggle to reach the $4,000 per ounce mark signals a clear shift toward risk-taking in the market. Since peaking above $4,200 during last quarter’s South China Sea tensions, gold has faced ongoing pressure from easing geopolitical concerns. With steady interest rates making non-yielding assets less appealing, a failure to surpass resistance levels could prompt traders to initiate fresh short positions via futures contracts. Create your live VT Markets account and start trading now.

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