Bitcoin rallied sharply on Monday, mirroring gains across global markets as investors cheered progress in U.S.-China trade relations and bet on a Federal Reserve rate cut later this week.
The world’s largest cryptocurrency climbed 3.5% to $115,504 by 01:22 ET (05:22 GMT), breaking above its October range of $100,000 to $110,000.
US-China Trade Optimism Fuels Market Rally
Over the weekend, officials from the U.S. and China announced that they had reached a framework trade deal, signaling a potential easing of tensions between the two largest economies. The agreement reportedly covers key issues such as rare earth export curbs, U.S. tariffs, and shipping costs, and will be expanded upon when Donald Trump and Xi Jinping meet later this week in South Korea.
The development boosted risk appetite across global markets. Although cryptocurrency prices aren’t directly tied to trade policies, they often react to shifts in investor sentiment. Earlier this month, heightened concerns over trade tensions had pushed crypto prices lower, but the latest progress sparked renewed optimism.
Broader Crypto Market Rebounds
Following Bitcoin’s lead, altcoins also advanced on Monday.
- Ethereum (ETH) jumped 7.5% to $4,240.35
- BNB rose 2.8% to $1,151.90
- Solana, Cardano, and XRP gained between 1.5% and 6%
- Among memecoins, Dogecoin surged 6.3%, while $TRUMP added 4.2%
The broader rally extended from the weekend after U.S. inflation data came in slightly softer than expected, raising expectations that the Federal Reserve will deliver a 25-basis-point rate cut during its upcoming meeting.
Rate Cut Bets Add Fuel to the Crypto Fire
According to CME’s FedWatch tool, markets are now pricing in nearly a 100% chance of a 25 bps rate cut. Lower interest rates are typically bullish for cryptocurrencies, as they increase liquidity and encourage risk-taking.
Historically, such environments have driven major crypto bull runs—most notably in 2021, when Bitcoin and other digital assets hit record highs amid ultra-low rates.
What’s Next for Markets?
Beyond rate cuts, attention will also turn to U.S. tech earnings, which could influence crypto trends. Digital assets have often mirrored movements in high-growth tech stocks, though Bitcoin has recently lagged behind equities.
As global optimism rises around trade and monetary easing, investors are watching closely to see whether Bitcoin can sustain momentum above the $115,000 mark—potentially setting the stage for another leg higher.
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