Bitcoin experienced a notable upswing over the weekend, climbing 3.5% to reach $115,400, a rise spurred by increasing optimism regarding easing trade tensions between the United States and China. The positive sentiment followed a meeting in Malaysia where officials from both countries came together to discuss a preliminary framework aimed at de-escalating the ongoing trade war, ultimately boosting risk appetite across global markets.
According to CoinGecko data, Bitcoin started the weekend at $110,960 before hitting its peak, though it saw a slight cooling in values later, trading at approximately $115,235. Despite this weekend’s boost, Bitcoin remains about 6.5% below its all-time high of $126,000 recorded on October 6.
Analysts note that this upward trend in Bitcoin’s value is largely reflective of broader macroeconomic sentiments rather than a direct correlation to trade negotiations. Daniel Liu, CEO of Republic Technologies, emphasized that the rally showcases how macro sentiments continue to sway digital assets. He pointed out that the optimism stemming from U.S.-China dialogues has briefly heightened risk appetites across financial markets, asserting that Bitcoin is increasingly perceived as a high-beta asset.
Liu cautioned that the price movement reflects traders’ responses to expectations of a softer macroeconomic environment and looser financial conditions rather than any fundamental changes in trade relations. “What we’re really seeing is a reflexive move of traders,” Liu stated, indicating that current trading psychology has become more influential than the actual fundamentals of Bitcoin demand.
In the digital prediction platform Myriad, sentiment skewed heavily towards “greed” as users reflected on market conditions. Greed sentiment hit a peak of 60% earlier on Sunday before settling at 57.4%, compared with a 42.6% fear level, suggesting bullish sentiment amid the trade discussions.
Further insights from industry experts suggest that while the renewed dialogue between the U.S. and China has created a swell of optimism, significant on-chain activity metrics such as transaction counts and active user numbers have not yet validated the price recovery. According to a report from Tiger Research, these vulnerabilities hint at an uncertain near-term trajectory for Bitcoin.
Nonetheless, analysts at Tiger Research maintain a bullish outlook for the fourth quarter, forecasting a target of $200,000 for Bitcoin. This anticipation is driven by expected global liquidity expansion, increasing institutional investment, and the Federal Reserve’s likely rate-cutting approach in response to ongoing economic conditions. The upcoming Asia-Pacific Economic Cooperation (APEC) summit is also expected to add to market volatility in the near term, further influencing Bitcoin’s price movements.
