Core Scientific Inc. leads North American Bitcoin mining with efficient, large-scale operations.
Core Scientific Inc. plays a crucial role in North American Bitcoin mining, thanks to its efficient infrastructure. As interest in digital assets rises, Core Scientific’s strong performance suggests a positive trend for mining.
An analysis of the Elliott Wave pattern shows clear price movements and targets for Core Scientific. A zigzag correction, marked as Wave ((2)), hit $6.20 in April 2025, leading to new highs and ongoing bullish trends.
The company is now in Wave (3) of ((3)), needing at least three more upward movements. The stock is projected to rise to between $24.40 and $31.90, with a strong momentum wave currently underway.
The bullish trend is clear in the daily cycle. Investors should consider entering after corrections, such as the 3, 7, or 11-swing corrections, by using the Elliott Wave strategy. The Blue Box system effectively identifies these entry points, allowing investors to take advantage of the next upward movement.
Core Scientific’s bullish behavior comes in a robust crypto market. With Bitcoin staying above $115,000 in October 2025, conditions are favorable for efficient miners. This strong environment supports the notion that the stock’s upward movement is just beginning.
As the stock enters its most potent growth phase, call options could be a smart move, capitalizing on the anticipated rise toward the $24.40 to $31.90 target. This rally follows the April 2025 lows around $6.20. Traders might look at call options expiring in early 2026 to give this pattern time to fully develop.
For those preferring a more cautious strategy or seeking income, selling cash-secured puts during any dips is a wise choice. This strategy fits well with the idea of using pullbacks to build a position. A slight correction, normal even in strong trends, would provide a great opportunity to collect premiums at a comfortable strike price for owning shares.
This outlook is backed by robust industry fundamentals throughout 2025. The Bitcoin network’s hash rate has soared above 1,200 EH/s, yet profitability remains strong, with hash prices consistently over $120 per petahash per day. This indicates that efficient miners like CORZ are thriving in a very favorable revenue environment.
Looking back at previous cycles can shed light on how quickly these stocks can shift. After the 2020 halving, mining stocks saw explosive growth well into 2021, a pattern that seems to be repeating now. Current trends suggest that the most intense phase of this post-halving rally is still to come.
The Raw Material Price Index in Canada increased by 1.7% after a 0.6% decline.
Recent data shows that Canada’s Raw Material Price Index rose by 1.7% in September, a change from last month’s drop of 0.6%. This news comes amidst concerns about Canadian inflation, trade disagreements, and the possibility of a US government shutdown.
In the markets, the Dow Jones Industrial Average increased by 550 points after Apple received an upgrade. Gold prices jumped by 2% as expectations of Federal Reserve rate cuts grew. Silver also rose as it became a safe haven amid fears of a US shutdown and geopolitical issues.
Currency Fluctuations
Currency pairs like EUR/USD and GBP/USD have seen fluctuations. The EUR/USD fell to 1.1640, close to daily lows, while GBP/USD tested support at around 1.3400. Gold remains just below $4,360, affected by ongoing US–China trade worries and anticipated shifts in Federal Reserve policy. In the world of cryptocurrencies, some analysts predict Bitcoin could hit $500,000 by 2028. However, a recent crash in the crypto market resulted in losses exceeding $19 billion in leveraged positions. Investors are expected to monitor US inflation data and ongoing US–China trade talks this week. These economic indicators are likely to heavily impact the markets in the upcoming days.Mixed Signals from the US
The US is sending mixed signals, with concerns about a shutdown alongside hope for a resolution. This situation is likely to increase market volatility, making long vega options strategies appealing. Historically, the VIX surged over 30% during the first week of the extended 2018-2019 shutdown, which could happen again soon. A softer US Dollar trend is still in play, driven by increasing expectations of a Federal Reserve rate cut. Fed Fund futures now indicate a better than 75% chance of a cut before the year ends, putting pressure on the dollar. This supports using derivatives to anticipate further declines in the dollar index (DXY). Gold’s rise to nearly $4,360 per ounce is a reaction to this uncertainty and the weak dollar. Having more than doubled since early 2020, gold remains a top safe-haven asset. Using call options on gold futures can help investors participate in potential gains while managing risk if market sentiment changes. The unexpected 1.7% increase in Canada’s Raw Material Price Index for September is an important data point to monitor. This inflationary pressure positions the Bank of Canada as more hawkish compared to the dovish Federal Reserve, offering a chance to bet on a stronger Canadian dollar against the US dollar using futures or options contracts. While EUR/USD and GBP/USD are experiencing slight pullbacks, attention will be on upcoming inflation data from Europe. The UK’s CPI report on Wednesday will be particularly important, especially since last month’s reading exceeded the Bank of England’s target at 3.1%. Another strong report could easily push GBP/USD back above the 1.3400 level, creating opportunities for short-term trades. Create your live VT Markets account and start trading now.In September, Canada’s industrial product prices rose by 0.8%, up from 0.5% the previous month.
In September, Canada’s industrial product prices rose by 0.8%, exceeding the expected 0.5% growth. This increase suggests trends that may affect various markets, especially in the industrial sectors.
The GBP/USD pair is fluctuating as it approaches the 1.3400 support level, reacting to the strengthening of the US Dollar just before Wall Street’s closing.
Gold Prices and Federal Reserve Expectations
Gold is just below $4,360 per troy ounce, influenced by ongoing trade concerns between the US and China. There’s growing speculation that the Federal Reserve may adopt a more cautious approach, which could shift market dynamics. Trade issues and inflation in the US and China are major concerns in economic discussions, as markets wait for new data. For cryptocurrency watchers, Bitcoin shows strong growth potential, with rising interest despite recent ups and downs. New insights keep emerging, influencing the future of digital assets. FXStreet highlights the need for careful research before making any investment choices. Forward-looking statements come with uncertainties, and investing poses risks, including losing your principal amount. Readers are urged to make informed decisions on their own.Volatility and Investment Strategies
The unexpected 0.8% increase in Canadian industrial prices signals that inflation remains persistent. We can expect the Bank of Canada to maintain a hawkish stance, which may strengthen the Canadian dollar. This makes buying call options on the loonie or betting on higher short-term Canadian interest rates appealing in the coming weeks. In the US, talk of a government shutdown and uncertainty about the Fed’s next steps are creating a volatile environment. With the VIX, a key market fear indicator, sitting at a relatively low 16, complacency appears to have taken hold despite the risks. This presents an opportunity to buy VIX call options or use straddles on major indices to profit from sharp market movements. While the market anticipates Fed rate cuts, remember that core inflation for September was still a high 3.6% year-over-year. This discrepancy suggests that unexpectedly strong jobs or inflation data could quickly change the pricing of Fed fund futures. Options betting against significant rate cuts before spring 2026 might offer substantial value. Don’t overlook the flight to safety amidst ongoing geopolitical tensions and US political issues. Gold surged over 4% during the prolonged shutdown in 2018, and the current environment feels similar. Call options on gold and silver could serve as a solid hedge against increasing uncertainty and a potentially weaker US dollar. The recent rebound of the US dollar is putting pressure on both the Euro and the Pound Sterling. Recent German manufacturing PMIs are signaling recession risks below 45, leaving the European Central Bank with limited options to be as hawkish as the Fed. This suggests a strategy of selling rallies in the EUR/USD pair, possibly utilizing put options to minimize risk while taking advantage of downside movement. Create your live VT Markets account and start trading now.Pound Sterling shows cautious trading against most rivals as UK inflation data approaches
The Pound Sterling is starting the week by lagging behind other currencies. This performance is largely due to the upcoming UK Consumer Price Index (CPI) data for September, which is a major focus for the market.
Traders are closely watching for any changes the Bank of England might make to interest rates. The core CPI is expected to rise to 3.7% annually, up from 3.6%.
Currency Market Dynamics
In the currency markets, the GBP/USD pair has seen some ups and downs. It has moved toward the 1.3500 level after dropping to around 1.3250. The US Dollar’s movement plays a big role in these fluctuations, as it faced challenges last week. Traders are also focused on US inflation data, which could affect the direction of GBP/USD. Gold has been rising in response to global uncertainties and a likely cautious stance from the Federal Reserve. Recently, it reached a daily high of about $4,360 per troy ounce. Standard Chartered is optimistic about Bitcoin, forecasting a value of $500,000 by the end of 2028. The adoption of cryptocurrencies by institutions is expected to keep growing.Pound Sterling Outlook
As of October 20, 2025, we are keeping a close eye on the Pound Sterling, which seems to be underperforming against other major currencies. The market is eagerly awaiting the UK’s September Consumer Price Index (CPI) report, set for release on Wednesday, October 22. This data will significantly influence the Bank of England’s (BoE) interest rate decisions for the remainder of the year. The expectation is for core inflation to rise to 3.7% from 3.6%. Any surprise in this figure could lead to notable market movements. Last month, August’s core inflation was stubbornly high at 3.9%, which prevented the BoE from committing to further rate cuts. A high reading this week would likely support the idea that rates will remain elevated, potentially strengthening the Pound. For derivative traders, there is an opportunity to capitalize on the inflation announcement. Using short-dated straddles or strangles on GBP/USD could be a smart strategy to take advantage of expected volatility without betting on a specific direction. If the inflation number deviates from the 3.7% forecast—whether up or down—these positions could become profitable. The GBP/USD pair has shown resilience, finding solid support around 1.3250 and now moving toward the 1.3500 resistance level. This recent strength is partly due to a weaker US Dollar, which lost ground against most other currencies. The US Dollar Index (DXY) fell below 103.5 last week for the first time in two months, following disappointing retail sales figures. This dollar weakness supports GBP/USD, but the key test will be this week’s data. Traders who are optimistic about the Pound, expecting high UK inflation, might consider call options with a strike price above 1.3500. On the other hand, those who believe UK inflation will decrease and that the BoE will suggest rate cuts could look at put options below the 1.3250 support level. We recall how inflation surprises from 2022 to 2023 caused significant fluctuations in the currency markets, often moving pairs by over 1.5% in just one day. With the BoE’s current base rate held at 5.25% for over a year, any data that changes the outlook for future policy will be magnified. Therefore, setting up positions to profit from a breakout from the current range seems like a sound strategy in the coming days. Create your live VT Markets account and start trading now.Commerzbank’s Tommy Wu reports that China’s Q3 GDP growth slowed to 4.8% because of weak demand.
China’s GDP growth for Q3 has slowed to 4.8% year-on-year, but it is still on track to meet the official annual goal of 5%. The boost in GDP mainly comes from strong exports, while household spending and fixed investment have decreased.
When looking at nominal GDP growth, the rate dropped to 3.7%, marking the 10th quarter of deflation. This ongoing trend highlights issues with domestic demand and points to deeper economic troubles.
Domestic Pressures
Overall GDP growth for the first three quarters reached 5.2% year-on-year, meeting expectations. However, despite these yearly growth figures seeming positive, other indicators show that the domestic market is under pressure, especially due to the shrinking fixed investment sector. This article comes from the FXStreet Insights Team, which gathers market insights from various experts. Please note that this information is for informational purposes only and should not be considered as investment advice. Future concerns may include risks that could lead to financial losses for those involved in the market. China’s latest GDP data suggest that exports are keeping the economy afloat, while internal demand is weak. There is ongoing weakness in household spending and a decrease in fixed investment. Ten consecutive quarters of deflation indicate that concerns about internal demand are significant. This situation is putting downward pressure on the Chinese yuan, creating opportunities in derivatives that can benefit from its weakness against the US dollar. The offshore yuan (CNH) has already fallen below 7.35, reacting to disappointing retail sales data from September, which showed a mere 2.5% growth. Strategies like buying USD/CNH call spreads could be a calculated way to bet on further depreciation.Market Volatility Expected
The decline in fixed investment is a negative sign for industrial commodities. Iron ore futures on the Dalian exchange have dropped 8% this month, falling below $100 per tonne for the first time since early 2024. We expect further weakness in copper and other base metals, making options like short positions in futures or purchasing puts on commodity ETFs appealing. With these challenges, we predict that volatility in Chinese and Hong Kong stocks will increase in the coming weeks. The Hang Seng Index has struggled to maintain gains as corporate earnings are pressured by deflation and weak consumer spending. Derivative traders might want to consider protective puts on broad China market ETFs like FXI or MCHI to safeguard against market declines. The Australian dollar, often viewed as a barometer for Chinese economic health, is also facing difficulties. As China is Australia’s largest export market, reduced demand for raw materials severely impacts the currency. The AUD/USD pair is testing support around 0.6400, a level it hasn’t broken since the global slowdown in 2023, creating chances for short forex derivative plays. Globally, this weakness from a key economic player adds to the argument for a more cautious approach from the Federal Reserve. The latest Caixin Manufacturing PMI for China dropped to 49.5 in September, indicating a contraction that aligns with a ‘risk-off’ sentiment. This may lead to higher demand for safe-haven assets and limit how much US Treasury yields can rise in the near future. Create your live VT Markets account and start trading now.BNY’s analysts say asset allocators are reassessing equity positions amid geopolitical risks and high valuations.
Markets are currently cautious due to high prices and geopolitical tensions. As a result, asset managers are reassessing their investments in different countries and sectors in case of corrections.
Recent changes have mainly affected trade and credit factors, prompting a closer look at positioning. Earnings challenges are also influencing the current market cycle. Among 45 equity markets, nine have holdings scores above 20%, largely due to high prices and improving metrics.
Sector Holdings Overview
Both emerging and developed markets are concentrating their holdings in the AI and technology sectors. In developed regions, the semiconductor and equipment industries are performing over 20% better than their average over the past year. Additionally, the materials sector, boosted by rising gold prices, stands fourth in the rankings. The auto industry has strong holdings, even with unfavorable news for traditional automakers. However, China’s electric vehicle sector faces unique challenges. The materials sector is sensitive to gold price changes, which supports recent positioning. Overall, technology and materials sectors show strong performance, with notable participation from the auto sector in this risk-averse market. The FXStreet Insights Team gathers insights from various experts and analysts. Topics like US-China trade relations and the status of the US government are in focus, especially with new economic data on the way. The opinions shared are those of the writers and do not represent the official stance of FXStreet. As the market shifts away from risk, traders should think about strategies that take advantage of increased volatility. The VIX has risen above 25 recently, a significant increase from the sub-18 levels seen in the summer of 2025. In this environment, purchasing protective put options on broad indices like the S&P 500 is a smart move to protect against further losses.Investment Strategies Amid Volatility
Traders should be cautious about crowded trades in technology, especially in semiconductors with historically high holdings. While the VanEck Semiconductor ETF (SMH) has performed well through mid-2025, the combination of high valuations and increasing earnings challenges could lead to a sudden decline. Considering bearish positions, like purchasing puts on tech-focused ETFs, might be timely as managers start to reduce their overweight exposure. On the other hand, materials exposure remains strong, primarily due to gold’s status as a safe investment. With ongoing geopolitical risks, gold has consistently maintained the $2,450 per ounce level, which supports related mining stocks. Traders could consider buying call options on gold ETFs to benefit from this persistent demand for safety. The auto sector is showing signs of pressure, particularly from challenges in China’s electric vehicle market. Data from September 2025 revealed a slowdown in EV sales growth in China, putting pressure on the margins of automakers involved in that market. This suggests that put options on specific car companies heavily reliant on China might be a more effective strategy than betting against the entire sector. Overall, concerns about earnings are growing, reinforcing a defensive strategy. Analysts have recently lowered their fourth-quarter 2025 earnings growth estimates for the S&P 500, citing trade challenges and slowing global demand. This environment supports derivative strategies that can profit from either a market downturn or a prolonged period of volatility in the weeks ahead. Create your live VT Markets account and start trading now.The USD/CAD pair stays stable above 1.4000 as attention turns to the Bank of Canada’s survey.
Insights from the FXStreet Team
The FXStreet Insights Team shares expert observations and insights from analysts. Please remember that the market data is for informational purposes only and should not be used as trading advice. Currently, the Canadian dollar is under pressure. The USD/CAD exchange rate is well above 1.4000. This situation arises because the market fully expects a rate cut from the Bank of Canada on October 29. Recent data backs this up, as Canada’s September jobs report showed a surprising loss of 20,000 jobs, raising the unemployment rate to 6.2%. In contrast, the US economy seems stronger, which may keep the Federal Reserve on hold for now. The latest Non-Farm Payrolls report revealed a strong increase of over 250,000 jobs, while core inflation remains above the Fed’s target at 3.4%. The growing gap between a dovish Bank of Canada and a neutral Federal Reserve is driving the USD/CAD higher. For those trading derivatives, this situation suggests a focus on Canadian dollar weakness against the US dollar. Buying USD/CAD call options with expiration dates after the October 29 meeting offers a straightforward way to capitalize on this expected trend. A bull call spread might also be a good option to lower the initial cost, given the high certainty of this event.Energy Market Weakness and Historical Patterns
Weakness in energy markets is adding to the pressure on the Canadian dollar. WTI crude prices have recently dipped below $80 a barrel, impacting the commodity-linked currency. This scenario is similar to 2015 when a mix of BOC rate cuts and falling oil prices drove USD/CAD above 1.4500. We believe this historical trend can provide valuable insights for the upcoming weeks. Create your live VT Markets account and start trading now.Optimism in US-China trade and falling oil prices lead to a modest rise in USD/CAD
The USD/CAD rose by 0.10% to around 1.4030, driven by a boost in risk appetite from easing US-China trade tensions and lower oil prices affecting the Canadian Dollar. Recent discussions between US and Chinese officials, along with upcoming meetings, have sparked hopes for a trade deal, improving market sentiment.
In the US, reduced worries about regional banks following strong earnings from major institutions have increased risk appetite. Still, the US Dollar is cautious as it awaits the delayed September Consumer Price Index (CPI) release, which is important for predicting Federal Reserve monetary policy. Markets expect a 25-basis-point rate cut in October.
Focus on Canadian Economic Indicators
In Canada, attention is on coming economic data, especially the Consumer Price Index. This data is critical for guiding the Bank of Canada’s monetary policy after its recent rate cut. Lower inflation could lead to more easing, while a higher CPI might limit policy options. The Canadian Dollar is also under pressure from declining oil prices, with West Texas Intermediate trading below $57, compounded by global oversupply concerns. Overall, the USD/CAD pair remains supported as most expectations for Fed rate cuts are already priced in, while weak energy prices restrict the Canadian Dollar’s recovery. Now, on October 20, 2025, the focus has shifted from simple trade optimism between the US and China to a more strategic “de-risking” in technology and supply chains. Last year’s data show Mexico is now the US’s top trading partner, which has significantly changed capital flows away from China.Energy and Monetary Forces
The Canadian dollar is getting support from factors that were not present in earlier analyses. West Texas Intermediate (WTI) crude has been strong, averaging over $85 per barrel in the third quarter of 2025, a significant increase from the under $60 prices during past trade tensions. This boost in energy exports is beneficial for the Canadian economy and its currency. Monetary policy is now the main focus, with the situation having drastically shifted since the aggressive rate hikes of 2022-2023. The Bank of Canada currently holds its key rate at 4.5%, while the Federal Reserve is slightly higher at 5.0%. This leads to a small but crucial rate differential favoring the US dollar. With the latest September CPI data showing Canadian inflation at 2.8% and US inflation at 3.1%, the Fed has limited space to ease its policies. For traders in derivatives, this sets up a classic tug-of-war between strong commodity prices bolstering the CAD and a hawkish Fed supporting the USD. This hints that range-trading strategies or volatility plays on the USD/CAD pair could be beneficial in the weeks ahead. Options traders should keep in mind that implied volatility often rises around central bank meetings, with the Bank of Canada’s decision coming next week. We are closely monitoring upcoming inflation and employment data from both countries. Any indication that the US economy is slowing quicker than Canada’s could rapidly shift expectations for the Fed’s November meeting, challenging the dollar’s recent strength and potentially pushing USD/CAD to lower support levels. Create your live VT Markets account and start trading now.Pound Sterling shows weakness against rivals amidst inflation concerns and investor caution
The Pound Sterling is facing challenges against other currencies as attention shifts to the UK inflation data coming out on Wednesday. The UK Consumer Price Index (CPI) is predicted to rise by 3.7% annually, up from 3.6% previously.
The Bank of England (BoE) is keeping a close eye on inflation, expecting it to peak at around 4%. Recent data from the UK labor market shows slower wage growth and a rising unemployment rate, which has led to increased expectations for interest rate cuts by the BoE.
Pound Sterling Against US Dollar
In other news, the Pound Sterling fell to 1.3415 against the US Dollar, partly due to decreasing trade tensions between the US and China. The US Dollar remains strong, supported by trade developments and recent comments from US President Donald Trump about sustainable tariff levels. Investors are looking forward to the delayed US CPI data release on Friday. Many traders believe the Federal Reserve will cut interest rates by at least 50 basis points before the year ends. The latest currency heat map shows how the Pound Sterling is performing against other major currencies, with the New Zealand Dollar currently the strongest against the British Pound. As of October 20, 2025, the Pound Sterling is trading cautiously ahead of essential inflation data from both the UK and the US. The focus is on the upcoming Consumer Price Index (CPI) reports, which will significantly impact the BoE’s next decision. This scenario reminds us of earlier years when central bank policies relied heavily on inflation data. The key event is the UK September CPI data release this Wednesday. Analysts expect core inflation to remain above the BoE’s 2% target, with the Office for National Statistics reporting an annual rate of 2.8% for August. If the number is higher than expected, it could reduce the likelihood of a BoE rate cut before the end of the year, potentially giving the Pound a short-term boost.Recent Developments And Strategies
On the other hand, if we see signs of slowing price pressures, it may heighten expectations for policy easing by the BoE, which has kept its Bank Rate at 4.5% for the last three meetings. Traders should prepare for increased volatility around this release. Utilizing short-dated options could be a strategy to take advantage of any potential spikes, as implied volatility in GBP pairs is already rising. Meanwhile, the US CPI data set to release on Friday also holds significant importance. The Federal Reserve is currently in a waiting mode, and with US inflation recently dropping to 2.5%, a low reading could reinforce expectations of a rate cut. This might weaken the US Dollar and could lead to a rise in GBP/USD, independent of the UK data. Right now, the GBP/USD pair is trading around 1.2450, a significant drop from the 1.3400 range observed a few years ago, reflecting a period of strong dollar performance. Geopolitical factors, particularly ongoing trade discussions between the US and Asian economies, add another layer of uncertainty, though these concerns are less intense than the tariff issues from the Trump era. Traders should consider the interaction between the two inflation reports as a key influence on the pound in the weeks ahead. With data risks coming from both sides, strategies that benefit from significant movements in either direction are advisable. Purchasing a GBP/USD straddle with an expiration after both CPI releases may be a smart choice for those expecting a breakout from the current range. The premium cost is the maximum risk, but a surprising move from either the BoE or the Fed could lead to profitability. Create your live VT Markets account and start trading now.NZD/USD struggles to stay above 0.5750 despite strong inflation in New Zealand and positive data from China
The New Zealand Dollar is facing challenges and has not managed to rise above 0.5750. Although inflation in New Zealand reached 3% year-on-year in the third quarter, this news did not have a lasting positive effect on the currency. The rise in prices was mainly due to increased electrical costs, rents, and food prices.
Positive economic reports from China helped support the New Zealand Dollar a bit. However, the Reserve Bank of New Zealand’s recent interest rate cut of 50 basis points is likely holding back any further gains for the currency. This easing of monetary policy is intended to help weak economic growth.
