Bitcoin is holding steady above $115,000 following a weekend rally that reflects renewed optimism in the market. This surge comes amid indications of diminishing tensions between the United States and China, with President Donald Trump announcing promising developments in trade talks.
The US dollar’s decline against key global currencies has also played a role in enhancing market sentiment. The euro, yuan, and Australian dollar all appreciated, signaling a shift as investors seek alternatives to traditional safe-haven assets.
Most notably, the Chinese yuan has reached its strongest position in over a month, buoyed by a more assertive midpoint rate set by the People’s Bank of China. Similarly, the Australian dollar gained traction following hawkish comments from the nation’s central bank governor, which suggests that the appetite for riskier assets is increasing.
Institutional Activity on the Rise
In a testament to growing institutional confidence, crypto lender Ledn has surpassed $1 billion in Bitcoin-backed loans this year alone, showcasing a significant uptick in demand for crypto credit. As the market heats up, investors are opting to leverage their Bitcoin holdings rather than liquidate them.
Since its inception, Ledn has issued $2.8 billion in BTC loans, with a noteworthy $392 million issued in just the third quarter of this year. Operating across 100+ countries, Ledn continues to highlight Bitcoin’s dual role as both a store of value and an active credit asset.
Additionally, the Trump-linked firm American Bitcoin, co-founded by Eric Trump and Donald Trump Jr., recently expanded its treasury by acquiring 1,414 BTC valued at $163 million. This strategic move elevates their total holdings to 3,865 BTC, worth approximately $445 million, underscoring their long-term confidence in Bitcoin’s potential.
Traders Eye Federal Reserve Meeting
As Bitcoin’s price action gathers momentum, traders are increasingly building leveraged positions ahead of the Federal Reserve’s meeting this Wednesday. Broad markets anticipate a quarter-point interest rate cut, which is expected to spur interest in risk assets.
Bitcoin’s open interest in derivatives markets has surged to $37.63 billion, reflecting the total value of all open positions. This figure has notably risen from $33 billion just a week prior, indicating heightened trading activity as expectations of a rate cut grow.
Prediction market Myriad suggests a 92.6% likelihood of this anticipated rate cut, bolstered by signs of weakness in labor reports and easing core inflation. Fed Chair Jerome Powell’s hints at a potential end to quantitative tightening have further contributed to market speculation regarding policy shifts.
Gracy Chen, the CEO of Bitget, indicated the expected rate cut to between 4.00% and 4.25% has already been factored into market prices. A cumulative easing cycle could lead to broader liquidity conditions, favoring risk-oriented investments.
The bullish sentiment surrounding Bitcoin was evident over the weekend, driven by both ETF inflows and ameliorated trade relations. Should Bitcoin consistently hold above $112,000, it may rally towards $118,000 to $120,000 by month’s end.
Currently, Bitcoin trades at approximately $114,572, with technical analysis suggesting a potential double-top formation near the $117,600 resistance level. A successful break past this threshold could propel Bitcoin toward the $120,500 and $124,100 ranges, whereas failure to maintain prices may result in a drop back to around $112,250.
