Bitcoin Climbs Above $111,000 as Trade Tensions Ease and Inflation Cools

Bitcoin extended its rebound on Friday, climbing near $111,000 and heading for a solid weekly gain, as signs of easing trade tensions between the United States and China and softer U.S. inflation data boosted investor sentiment.

The world’s largest cryptocurrency rose about 1%, marking a 2% weekly increase after two weeks of losses. The move came as markets welcomed confirmation that U.S. President Donald Trump and Chinese President Xi Jinping will meet next week on the sidelines of the APEC summit in South Korea—a signal that months of tariff threats and economic friction may be giving way to renewed diplomacy.

The news helped lift risk appetite across global markets, with investors turning back to equities and digital assets alike. The prospect of thawing trade relations reduced concerns of a renewed tariff battle that had rattled markets earlier this month.

Trade Thaw and Market Relief

The announcement of the Trump–Xi meeting followed a series of preparatory talks between U.S. and Chinese officials aimed at defusing tensions. Negotiators are reportedly working to prevent a new round of tariffs and to address China’s export curbs on critical materials such as rare earth minerals.

The return of high-level engagement reassured investors that both sides are seeking to avoid escalation. That sense of calm has been mirrored in the cryptocurrency market, where Bitcoin’s price often moves in tandem with overall investor confidence.

Inflation Slows, Fed Eyes Rate Cut

Adding to the upbeat tone, U.S. inflation data showed that consumer prices rose 0.3% in September, bringing the annual rate to 3%, slightly below market expectations. Core inflation, which excludes volatile food and energy prices, also increased by 0.2% on the month, maintaining an annual pace of 3%.

The moderation in inflation offered some relief to policymakers and reinforced expectations that the Federal Reserve could move ahead with a quarter-point rate cut at its upcoming meeting. The figures also suggest that recent tariffs have not yet had a significant impact on consumer prices.

Despite the ongoing government shutdown, the inflation data were released as they are used to determine Social Security cost-of-living adjustments. Most other official economic reports remain delayed until funding resumes.

Trump Pardons Binance Founder

In a surprise development, President Trump issued a full pardon to Changpeng “CZ” Zhao, the founder of Binance, one of the world’s largest cryptocurrency exchanges. Zhao had previously pleaded guilty to failing to maintain an anti–money laundering program and served a short prison sentence as part of a broader settlement that saw Binance pay billions in penalties.

The move was seen as another sign of the administration’s evolving stance on digital assets. In a statement following the pardon, Zhao expressed gratitude and pledged to help “make America the capital of crypto.”

Broader Crypto Market Gains

Most major cryptocurrencies joined Bitcoin in the rally. Ethereum advanced more than 2%, trading around $3,900, while XRP gained over 4% to reach $2.50. Solana and Cardano also posted modest increases, and meme tokens such as Dogecoin recorded smaller upticks.

The broad-based recovery comes after weeks of volatility driven by shifting macroeconomic narratives—from rate expectations to global trade uncertainty. Despite ongoing fluctuations, market analysts suggest that the latest rebound reflects renewed optimism in digital assets as investors seek alternatives to traditional markets.

The Road Ahead

With inflation easing and trade negotiations back on track, Bitcoin’s near-term outlook appears constructive. However, traders remain cautious ahead of next week’s Federal Reserve decision, which could set the tone for risk assets through the end of the year.

If the Fed confirms a rate cut and diplomatic progress continues between Washington and Beijing, Bitcoin could find additional support and potentially retest its previous highs. But for now, investors are keeping a close eye on the delicate balance between macroeconomic relief and lingering global risks.