Bitcoin Rebounds to $110K as US-China Tensions Ease and Fed Cut Bets Rise
Bitcoin extended its weekend rally on Monday, climbing back above the $110,000 mark as easing fears of a U.S.-China trade war boosted risk appetite across cryptocurrency markets.
Investors also grew more confident that the Federal Reserve will cut interest rates later in October, adding momentum to the broader crypto rebound as risk-driven assets gained strength globally.
By 01:20 ET (05:20 GMT), Bitcoin rose 3.5% to $110,608, recovering sharply from last week’s dip to $103,000, which was triggered by escalating trade tensions between Washington and Beijing.
Market Confidence Improves as Trump Tones Down Trade Rhetoric
The rebound followed comments from U.S. President Donald Trump, who said on Friday that a prolonged trade war with China was “not sustainable.” He also confirmed plans to speak with Chinese President Xi Jinping within the next two weeks.
In a similar tone, U.S. Treasury Secretary Scott Bessent stated that high-level trade talks between both nations were still on track this week.
The more conciliatory approach from U.S. officials eased market jitters and reduced fears of 100% tariffs on Chinese imports, sparking renewed optimism across global risk assets — including stocks, commodities, and cryptocurrencies.
Economic Uncertainty Still in Focus
Despite the improved sentiment, traders remain cautious as the U.S. government shutdown appeared set to enter its third week, delaying several key economic indicators. The lack of timely data has left investors uncertain about the health of the U.S. economy, especially ahead of the upcoming Federal Reserve meeting next week.
Altcoins Join the Crypto Rally
The recovery extended beyond Bitcoin, with altcoins also rebounding sharply on Monday.
- Ether (ETH) jumped 4.1% to $4,057.96, reclaiming the $4,000 level.
- XRP gained 4.2% to $2.45, while BNB rose 3.6% to $1,130.20.
- Solana (SOL) climbed 3.2%, and Cardano (ADA) surged 5.4%.
- Among meme tokens, Dogecoin (DOGE) advanced 5.6%, while $TRUMP added 2.2%.
However, despite the short-term recovery, both Bitcoin and Ether remain down around 2% for October, bucking the usual “Uptober” trend, where crypto assets typically perform strongly during this month.
Summary
Bitcoin’s sharp rebound above $110K reflects improving market sentiment, as easing U.S.-China tensions and expectations of a Fed rate cut restored confidence among risk-seeking investors. While altcoins joined the rally, ongoing macroeconomic uncertainty and the U.S. government shutdown continue to pose near-term challenges for crypto traders.
