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Bitcoin Approaches $116K as Stock Market Gains Momentum Amid Indications of Easing US-China Trade Strains
Bitcoin increased by 3.6% on Monday, surpassing $115k, as stock markets surged and risk appetite improved due to indications that trade tensions between the US and China might be easing.
This movement established a more positive outlook ahead of a week filled with central bank decisions and major earnings reports.
The cryptocurrency market mirrored the rise in equities. The total market capitalization grew by 3.7% to $3.9 trillion. Ether climbed 7% to $4,200, BNB gained 2.8% to $1,149, and XRP increased by 1.3% to $2.64.
Trump and Xi Set to Review Preliminary Trade Deal as Markets Eye De-Escalation
During the weekend, high-ranking economic officials from the US and China presented a framework that Presidents Donald Trump and Xi Jinping are anticipated to evaluate later this week in South Korea.
A deal that suspends more severe US tariffs and Chinese rare earth export restrictions would help alleviate concerns following months of rising trade risks.
Focus now shifts to policy meetings in Japan, Canada, Europe, and the US. The Federal Reserve is largely expected to reduce interest rates by 25 basis points after September’s inflation rose slightly less than anticipated, although the government shutdown and its impact on data remain a worry for markets.
98% probability of another 25 bps rate cut at Wednesday’s FOMC meeting pic.twitter.com/P9cPGoamVU
— Bitcoin Archive (@BTC_Archive) October 26, 2025
Cooling Inflation Strengthens Case for Rate Cut and Fuels Risk-On Momentum
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Investors are also navigating the busiest period of the US earnings season. Microsoft, Apple, Alphabet, Amazon, and Meta are set to report in the coming days, maintaining attention on balance sheets that have supported risk sentiment throughout 2025.
Anticipations for a quarter-point reduction remain intact. The Fed’s benchmark rate is projected to shift from 4.0% to 4.25% on Wednesday after the Consumer Price Index increased by 3% year over year in September, falling short of the 3.1% consensus.
Decreasing inflation and positive earnings expectations enhanced cyclical exposure across portfolios. Treasury yields softened, the dollar stabilized, and gold experienced profit-taking as investors shifted back into growth.
Institutional Interest Builds as Traders Rotate Toward Digital Asset Treasuries
In the realm of digital assets, treasury positioning remained a focal point. Concerns regarding MicroStrategy’s growth outlook contrasted with renewed institutional interest in companies such as Metaplanet, BitMine, and Galaxy Digital.
Miners received support from AI-infrastructure shifts and capital inflows, with traders identifying TeraWulf, CleanSpark, and Iren as early beneficiaries.
Among major cryptocurrencies, Solana, Jupiter, and Virtuals excelled due to ecosystem catalysts, while Tron and Ethena exhibited mixed flows amid DeFi rotation.
For crypto trading desks, the trajectory of interest rates, the tone from US-China discussions, and the earnings results will determine whether Bitcoin can extend its momentum toward $120,000.
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