The cryptocurrency market is experiencing a significant upswing, with total market capitalization climbing by 1.9% to approximately $3.92 trillion. This surge has predominantly been driven by substantial price increases in major cryptocurrencies such as Bitcoin and Ethereum. Bitcoin has seen a remarkable 4% rise, bringing its price to around $115,356, while Ethereum has jumped nearly 3%, trading at approximately $4,208. This rally comes as a welcome relief following a period of losses triggered by geopolitical tensions.
The latest gains appear to be fueled by decreasing tensions between the United States and China regarding trade, alongside increasing expectations of rate cuts from the Federal Reserve. Investors are keenly anticipating the results of the upcoming Federal Reserve meeting on October 29, where analysts predict a highly likely 25-basis-point rate cut, as indicated by the CME’s FedWatch Tool.
The crypto market had previously faced downturns due to fears related to a potential 100% tariff on China announced by President Trump, which initially sent Bitcoin’s value plummeting to as low as $103,000. However, the recent bullish sentiment is reflected in Bitcoin’s bounce back, which has enabled it to surpass its 50-day exponential moving average of $114,176. Analysts believe that bulls may be eyeing a retest of the $120,000 level, with hopes of breaching Bitcoin’s all-time high of $126,000.
Ethereum’s performance mirrors Bitcoin’s momentum, with its price gaining 7.7% in recent days. Other cryptocurrencies such as XRP, Solana, and Dogecoin have also seen substantial increases, albeit still operating below some established resistance levels.
Market analysts attribute the resurgence to a newly reached agreement between US and Chinese negotiators after a two-day discussion in Malaysia, which is expected to alleviate some of the adverse impacts of tariff threats. US Treasury Secretary Scott Bessent has characterized the discussions as having achieved a “very substantial framework” that could help prevent the imposition of severe tariffs and ease concerns over China’s export restrictions on rare-earth elements.
As the crypto market benefits from these developments, the volatility remains present, with Bitcoin currently trading at around $115,287.40 and Ethereum at $4,160.18. Many investors are encouraged to reassess their portfolios and consider new opportunities in the rapidly evolving cryptocurrency landscape as this bullish market sentiment continues to develop.
