Bitcoin Approaches $115k Amid US-China Trade Optimism and Rate Cut Anticipation

Bitcoin rose by 1.2% on Monday, reaching $114,880, as market sentiment improved following a framework trade agreement between the U.S. and China aimed at reducing trade tensions. This rally coincided with soft U.S. inflation data, fueling optimism that the Federal Reserve may announce an interest rate cut at its upcoming meeting.

U.S. and Chinese officials reported over the weekend that they had reached a preliminary trade deal, intended to be further discussed in a meeting between Presidents Donald Trump and Xi Jinping later this week. The agreement addresses contentious issues such as rare earth export regulations and increased tariffs.

Geoffrey Kendrick from Standard Chartered suggested that the improving U.S.-China relationship could signify a pivotal moment for Bitcoin, indicating it might not fall below the $100k mark again if current trends continue. Optimism has been further fueled by reports of China potentially suspending rare earth export controls and purchasing U.S. soybeans.

In the broader crypto market, Ether rose approximately 2% to $4,154.20, while BNB increased by 0.7% to $1,139.50. Other cryptocurrencies, including Solana, Cardano, and XRP, remained relatively stable.

The expectation of a 25 basis point rate cut this week, following a similar reduction in September, has driven market sentiment. Lower interest rates typically enhance liquidity, favoring speculative assets such as cryptocurrencies.