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Investing.com-- Bitcoin gained on Monday, tracking a broader rally in risk-driven markets after the U.S. and China announced a framework deal aimed at stemming further escalation in their ongoing trade conflict.
Risk appetite was also boosted by soft U.S. inflation data, which spurred increasing optimism that the Federal Reserve will cut interest rates at a meeting later this week.
Bitcoin rose 1.2% to $114,880.0 by 10:45 ET (14:45 GMT), breaking out of a $100,000 to $110,000 trading range seen through most of October.
US-China trade cheer boosts crypto
U.S. and Chinese officials said over the weekend that they had agreed to a framework trade deal, which will now be built on when leaders Donald Trump and Xi Jinping meet later this week.
The deal covers a host of contentious trade issues, including recent rare earth export curbs by China, higher U.S. trade tariffs and increased shipping fees between the two countries.
Trump and Xi are set to speak in South Korea later this week.
News of trade progress between the world’s biggest economies boosted risk appetite, as markets bet on no immediate escalation in their ongoing trade conflict.
While crypto is not directly impacted by trade disruptions, shifts in sentiment from any conflict tend to spark swings in the market. Earlier concerns over U.S.–China trade had kept crypto markets mostly lower through October.
Bitcoin may never drop below 100k again, says analyst
Standard Chartered’s Geoffrey Kendrick said improving U.S.–China relations and a shifting macro backdrop could mark a key turning point for Bitcoin, suggesting it “may NEVER go below 100k again” if current momentum holds.
Optimism followed reports that China will suspend rare earth export controls and buy U.S. soybeans in exchange for Washington dropping its 100% tariff threat, lifting sentiment and pushing the Bitcoin–gold ratio back above pre-tariff levels.
Kendrick said a break above 30 on that ratio and renewed Bitcoin ETF inflows would confirm the rebound, calling a new all-time high “absolute positive confirmation.”
He also cited this week’s expected Fed rate cut and the pending Fed Chair nomination as additional supports for Bitcoin’s outlook.
Crypto price today: altcoins rebound, Fed rate cut in focus
Broader crypto prices rose slightly, tracking Bitcoin on Monday, while also extending gains from a weekend rally.
World no.2 crypto Ether rose around 2% to $4,154.20, while BNB edged 0.7% higher to $1,139.50.
Solana, Cardano, and XRP were largely flat in the past 24 hours. Among memecoins, Dogecoin slipped marginally, while $TRUMP added 2.7%.
Crypto prices shot up late last week after U.S. consumer inflation data for September read slightly milder than expected, a move analysts say reflects improving sentiment.
“Futures open interest stabilized around $35 billion—levels last seen in July 2025 before Bitcoin’s all-time highs—showing a measured rebuild in leverage. If inflation eases, this structure could form the base for the next leg higher,” Iliya Kalchev, Nexo Dispatch Analyst, told Investing.com.
The print spurred increased conviction that the Fed will cut interest rates this week and present a largely dovish outlook on further easing. The central bank is expected to cut rates by 25 basis points later this week, after a similar cut in September.
Markets are pricing in a nearly 100% chance of a 25 bps cut, CME Fedwatch showed.
Lower rates bode well for crypto markets, given that they free up more liquidity to be deployed into speculative assets. Low rates have been a major driver of past crypto rallies, most notably 2021’s bull run.
Beyond rates, a host of key U.S. technology earnings are also set to drive market sentiment this week. Crypto prices tend to track U.S. tech stocks, but were seen falling behind equities in October.
(Ambar Warrick contributed to this report.)