{"id":120332,"date":"2025-10-27T13:47:08","date_gmt":"2025-10-27T09:47:08","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=120332"},"modified":"2025-10-27T13:47:11","modified_gmt":"2025-10-27T09:47:11","slug":"bitcoin-breaks-out-as-fed-cut-bets-and-trade-progress-lift-crypto-markets","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/bitcoin-breaks-out-as-fed-cut-bets-and-trade-progress-lift-crypto-markets\/10\/27\/market-updates\/","title":{"rendered":"Bitcoin Breaks Out as Fed Cut Bets and Trade Progress Lift Crypto Markets"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>Bitcoin surged on <strong>Monday<\/strong>, tracking a rally across global risk assets after the <strong>U.S. and China<\/strong> announced a preliminary <strong>framework deal<\/strong> aimed at defusing trade tensions, while soft <strong>U.S. inflation data<\/strong> bolstered expectations of a <strong>Federal Reserve rate cut<\/strong> later this week.<\/p>\n\n\n\n<p>The world\u2019s largest cryptocurrency climbed <strong>3.5% to $115,504.0<\/strong> by <strong>05:22 GMT<\/strong>, breaking above the <strong>$110,000 ceiling<\/strong> that had capped prices for much of October.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Fed Rate Cut Expectations Spark Risk Appetite<\/strong><\/h3>\n\n\n\n<p>Markets are now pricing in an almost certain <strong>25-basis-point rate reduction<\/strong> when the Fed concludes its two-day meeting on <strong>Wednesday<\/strong>, following September\u2019s softer-than-expected <strong>CPI inflation<\/strong>.<\/p>\n\n\n\n<p>This would mark the <strong>second consecutive rate cut<\/strong> after a similar move in <strong>September<\/strong>, signaling a potential shift toward sustained monetary easing. Lower borrowing costs tend to <strong>boost speculative assets<\/strong> like crypto by freeing up liquidity and reducing the opportunity cost of holding non-yielding investments.<\/p>\n\n\n\n<p>The <strong>CME FedWatch Tool<\/strong> showed traders assigning a <strong>near 100% probability<\/strong> to the cut, with expectations rising for another reduction before year-end.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>US\u2013China Trade Deal Lifts Sentiment<\/strong><\/h3>\n\n\n\n<p>Crypto markets also found support in news that <strong>U.S. and Chinese negotiators<\/strong> reached a <strong>framework trade deal<\/strong> in <strong>Kuala Lumpur<\/strong> over the weekend. The agreement reportedly covers contentious issues such as <strong>rare earth export curbs<\/strong>, <strong>tariffs<\/strong>, and <strong>shipping fees<\/strong>, and will be further discussed when <strong>Presidents Donald Trump and Xi Jinping<\/strong> meet later this week in <strong>South Korea<\/strong>.<\/p>\n\n\n\n<p>Trump confirmed optimism about the talks, saying he believed a <strong>\u201cdeal with China\u201d<\/strong> was imminent, easing concerns of a renewed trade escalation that had rattled risk assets throughout October.<\/p>\n\n\n\n<p>While digital assets are <strong>not directly affected<\/strong> by trade policies, improved market sentiment often translates into <strong>greater inflows into crypto<\/strong>, reversing the defensive positioning seen earlier this month.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Altcoins Rally as Liquidity Outlook Improves<\/strong><\/h3>\n\n\n\n<p>Broader crypto markets rallied in tandem with Bitcoin.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Ether (ETH)<\/strong> jumped <strong>7.5% to $4,240.35<\/strong>, leading the gains among major altcoins.<\/li>\n\n\n\n<li><strong>BNB<\/strong> advanced <strong>2.8% to $1,151.90<\/strong>.<\/li>\n\n\n\n<li><strong>Solana (SOL)<\/strong>, <strong>Cardano (ADA)<\/strong>, and <strong>XRP<\/strong> climbed between <strong>1.5% and 6%<\/strong>.<\/li>\n\n\n\n<li>Among <strong>memecoins<\/strong>, <strong>Dogecoin (DOGE)<\/strong> rose <strong>6.3%<\/strong>, while <strong>$TRUMP<\/strong> gained <strong>4.2%<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p>The sector\u2019s rebound followed last week\u2019s <strong>U.S. inflation report<\/strong>, which reinforced the likelihood of easier monetary conditions\u2014a backdrop historically favorable for digital assets.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Outlook: Monetary Easing Could Reignite Crypto Momentum<\/strong><\/h3>\n\n\n\n<p>With <strong>rate cuts<\/strong>, <strong>trade progress<\/strong>, and <strong>upbeat global equity performance<\/strong> aligning, traders are eyeing potential upside in crypto through the week.<\/p>\n\n\n\n<p>Analysts caution, however, that sustained momentum will depend on the <strong>Fed\u2019s tone<\/strong> and its <strong>forward guidance<\/strong> on future policy. A dovish stance could reignite <strong>bullish sentiment<\/strong> across digital assets, while a cautious message may see <strong>profit-taking<\/strong> resume.<\/p>\n\n\n\n<p>For now, <strong>Bitcoin\u2019s breakout above $110,000<\/strong> is seen as a <strong>technical signal of renewed momentum<\/strong>, suggesting a potential move toward the <strong>$118,000\u2013$120,000 zone<\/strong> if optimism holds into the Fed meeting.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin surged on Monday, tracking a rally across global risk assets after the U.S. and China announced a preliminary framework deal aimed at defusing trade tensions, while soft U.S. inflation data bolstered expectations of a Federal Reserve rate cut later this week. The world\u2019s largest cryptocurrency climbed 3.5% to $115,504.0 by 05:22 GMT, breaking above &hellip;<\/p>\n","protected":false},"author":9,"featured_media":108592,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[40,6827,49,36],"tags":[],"class_list":["post-120332","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-cryptocurrencies","category-daily-economic-reports","category-economic-reports","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/120332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=120332"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/120332\/revisions"}],"predecessor-version":[{"id":120333,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/120332\/revisions\/120333"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/108592"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=120332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=120332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=120332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}