Bitcoin Rebounds to $115K on US-China Trade Deal Optimism and Fed Rate Cut Bets
Bitcoin prices climbed on Monday, mirroring gains across global risk markets after the United States and China announced a framework trade deal designed to ease tensions between the world’s two largest economies. The news helped improve market sentiment and boosted demand for risk assets, including cryptocurrencies.
Appetite for risk also strengthened following softer-than-expected U.S. inflation data, which reinforced expectations that the Federal Reserve will deliver another interest rate cut later this week.
Bitcoin rose 3.5% to $115,504 by 01:22 ET (05:22 GMT), breaking out of its $100,000–$110,000 trading range seen through most of October.
US-China Trade Progress Lifts Crypto Sentiment
Over the weekend, U.S. and Chinese officials confirmed a framework trade agreement, which will be further discussed when President Donald Trump and President Xi Jinping meet later this week in South Korea.
The preliminary deal covers multiple sensitive areas, including rare earth export restrictions, U.S. tariffs, and shipping fees, marking a potential turning point in trade relations. The development eased fears of renewed conflict and supported broader market confidence.
While cryptocurrencies are not directly impacted by trade disputes, shifts in global sentiment tend to influence crypto market volatility. Concerns over the trade standoff had weighed on prices earlier in October, but improving relations helped trigger this week’s rebound.
Altcoins Rally as Traders Eye Fed Rate Decision
The broader crypto market moved higher in tandem with Bitcoin, extending gains from the weekend. Ethereum (ETH) surged 7.5% to $4,240, while BNB climbed 2.8% to $1,151. Other major altcoins, including Solana, Cardano, and XRP, advanced between 1.5% and 6%.
Among memecoins, Dogecoin gained 6.3%, and the politically-themed $TRUMP token added 4.2%.
The rally followed a mild U.S. inflation print for September, which bolstered confidence that the Fed will continue easing monetary policy. Markets expect a 25-basis-point cut this week, following a similar move in September. According to CME FedWatch, traders now price in nearly a 100% probability of that outcome.
Lower interest rates generally support crypto markets, as they boost liquidity and encourage investment in speculative assets—a key driver behind previous bull runs, including the major 2021 rally.
Beyond monetary policy, several major U.S. tech earnings reports due this week may also influence sentiment. Crypto assets often track tech stocks, though they lagged behind equities during October’s consolidation phase.
