The cryptocurrency market witnessed a remarkable surge over the weekend, with Bitcoin climbing 5.3% to reach $112,866. This movement signals a notable rebound from the previous week’s close of $107,088 and contributes to a broader market recovery.
In tandem with Bitcoin’s rise, the total market capitalization of all cryptocurrencies surged by an impressive 14%, elevating it to $3.73 trillion—an increase from October’s low of $3.24 trillion. Such developments reflect renewed investor confidence as cryptocurrencies begin to reclaim lost ground.
Furthermore, major altcoins joined the bullish trend, with notable gains observed in Hyperliquid, Virtuals Protocol, Zcash, and Aerodrome Finance, each spiking over 10% in just 24 hours. This surge underscores an across-the-board revival for crypto assets.
The catalyst for this price rally can be traced to encouraging economic indicators released by the United States. The Bureau of Labor Statistics revealed inflation data on Friday, indicating that the headline Consumer Price Index had risen slightly from 2.9% in August to 3.0% in September. Core inflation, which excludes volatile food and energy prices, also dropped to 3.0%, easing inflationary fears.
These inflation figures exceeded some analysts’ expectations, leading to heightened speculation regarding potential interest rate cuts by the Federal Reserve. Analysts at ING Bank even predict that the central bank might lower rates in its upcoming meeting this week, with additional cuts possibly on the horizon in December.
The positive economic news didn’t just impact crypto; traditional stock markets also responded favorably. The Dow Jones, S&P 500, and Nasdaq 100 all reached unprecedented highs, reinforcing a widespread return to a risk-on appetite among investors.
But the influence of non-economic factors can also be seen as instrumental in catalyzing market optimism. Recently, U.S. Treasury Secretary Scott Bessent confirmed a framework agreement reached between the U.S. and China aimed at halting the imposition of 100% tariffs proposed by President Trump. This diplomatic breakthrough alleviated ongoing trade tensions and shifted investor sentiment towards risk-taking.
Following the announcement, Bitcoin surged past $113,000, achieving its highest valuation in nearly two weeks. This momentum was welcomed as President Trump embarked on a diplomatic tour across Asia, intending to meet with Chinese President Xi Jinping at the APEC Summit.
Market analysts are closely monitoring Bitcoin’s movement, especially as it currently remains above its crucial 200-day moving average—a technical indicator that many view as a bullish sign. Increased institutional activity is also being noted, particularly from major funds and corporate treasuries that are slowly re-entering crypto markets after a previous downturn.
However, caution lingers as some analysts warn that the current surge may resemble a ‘dead cat bounce’, where an asset temporarily rebounds in value before resuming its decline. Resistance points for Bitcoin are observed at the 100-day moving average, which could signal diminishing bullish momentum if these levels cannot be surpassed.
As the crypto community looks forward to pivotal upcoming events—including the Federal Reserve’s announcement regarding rates—market participants remain on high alert. With big tech companies like Apple and Microsoft set to report earnings soon, their results could potentially influence the overarching sentiment in both the traditional and crypto markets.
In summary, Bitcoin traded at approximately $113,000 on Sunday following the finalization of the trade agreement, paving the way for a potentially stable and bullish environment for cryptocurrencies moving forward.
