Bitcoin (BTC) has surged to nearly $115,000, buoyed by easing trade tensions between the United States and China. This development has sparked a global increase in risk appetite, leading to gains across both equities and major cryptocurrencies, according to CryptoNews.
The cryptocurrency market followed suit, with its total market value rising by 3.7% to $3.9 trillion. Ether (ETH) climbed 7% to $4,200, Binance Coin (BNB) increased 2.8% to $1,149, and XRP rose 1.3% to $2.64. This positive momentum set a promising tone ahead of a week filled with central bank decisions and significant earnings reports.
During the weekend, senior economic officials from the US and China outlined a framework that Presidents Donald Trump and Xi Jinping are expected to review in South Korea later this week. A potential agreement that would halt increased US tariffs and Chinese export controls on rare earths could alleviate market tensions after months of escalating trade risks.
Upcoming policy meetings in Japan, Canada, Europe, and the US are of significant interest, with the Federal Reserve expected to cut interest rates by 25 basis points. This anticipated cut follows a slightly lower-than-expected rise in September inflation, despite concerns about the ongoing government shutdown’s impact on data.
Investors are also preparing for an intense period in the US earnings season, with major tech companies such as Microsoft, Apple, Alphabet, Amazon, and Meta set to report. These earnings reports are crucial as they have anchored risk sentiment throughout 2025.
Expectations for a quarter-point rate cut by the Federal Reserve remain strong, with the benchmark rate likely moving from 4.0% to 4.25%. This follows a year-on-year Consumer Price Index increase of 3% in September, below the 3.1% consensus. The prospect of cooling inflation and positive earnings has increased cyclical exposure in portfolios, with treasury yields easing, the dollar stabilizing, and gold experiencing profit-taking as investors shift back to growth.
In the digital asset market, treasury positioning remains a focal point. While concerns about MicroStrategy’s growth outlook persist, institutional interest is growing in companies like Metaplanet, BitMine, and Galaxy Digital. Miners are benefiting from AI-infrastructure pivots and capital inflows, with TeraWulf, CleanSpark, and Iren cited as early beneficiaries.
Among major cryptocurrencies, Solana, Jupiter, and Virtuals have outperformed due to ecosystem catalysts, while Tron and Ethena have shown mixed trading flows amid DeFi rotations. For crypto trading desks, the trajectory of interest rates, the outcome of US-China negotiations, and the earnings results will be pivotal in determining whether Bitcoin can sustain its momentum towards $120,000.
