Bitcoin Breaks $115,000, Bull Run Comeback?
Bitcoin rose about 3.5% to $115,500 on Monday, breaking out of the $100,000–$110,000 consolidation area that had been in place for most of October. This rise came amid global market euphoria after the US and China announced a new trade agreement framework that was said to ease tariff conflicts and the trade war between the world's two largest economies. Markets interpreted this as a sign of easing tensions, lowering risks, and a slightly brighter global growth outlook — leading to a return to risk appetite, including in crypto.
Officials from Washington and Beijing said they had reached initial common ground on long-sensitive issues: high US tariffs, China's restrictions on rare earth exports, shipping costs, and even TikTok. US Treasury Secretary Scott Bessent said President Donald Trump's threat of 100% tariffs is now "virtually off the table," and China is prepared to suspend rare earth exports for a year while the situation is reviewed. This has led the market to believe the trade conflict won't immediately erupt again when Trump and Xi meet this week, and this has also boosted riskier assets like crypto.
At the same time, risk-on sentiment is growing due to expectations of a Fed interest rate cut. The latest US inflation data came in more benign than expected, and market participants are now almost certain the US central bank will cut rates again this week. The probability of a 25 basis point cut at the Fed's late October meeting is estimated at above 95%-98%, according to market pricing based on CME FedWatch. For crypto, this is crucial: lower interest rates mean looser liquidity and lower money costs, so investors are more willing to invest in speculative assets like Bitcoin and altcoins.
The effect isn't limited to Bitcoin. Ether surged sharply, and other major coins like BNB, Solana, Cardano, and XRP also followed suit. Even memecoins like Dogecoin and politically themed tokens also rallied. In other words, the crypto market is receiving a double boost: news of a US-China trade deal that has calmed global risk appetite, coupled with expectations of a more dovish Fed. If these two stories continue—Trump and Xi agree on trade, and the Fed actually cuts interest rates—the market could read this as a signal of a new bullish phase for crypto as the year draws to a close. However, if either fails, volatility could rebound sharply. (asd)
Source: Newsmaker.id
