Crypto prices today are on the green, rising for a second straight session as traders welcomed signs of easing U.S.–China trade tensions and growing expectations of a Fed rate cut.
Summary
- Global crypto market up 3.5% to $3.98T as sentiment improves.
- BTC at $115K, ETH at $4.2K; liquidations surged 321% as shorts were squeezed.
- Rebound driven by easing trade tensions and growing Fed rate cut expectations.
The total market value of all cryptocurrencies climbed 3.5% in the past 24 hours to $3.98 trillion. At the time of writing, Bitcoin traded at $115,102, up 3.4% on the day, while Ethereum gained 6.8% to $4,199.
BNB advanced 2.4% to $1,143, and XRP rose 1.4% to $2.64. The rebound follows several days of consolidation after early October’s steep selloff, when risk assets fell on renewed trade fears and liquidation pressure.
The Crypto Fear & Greed Index stood at 51, marking a shift from “fear” to “neutral.” That suggests investors are growing more comfortable taking risk, though caution remains visible across derivatives markets.
Short squeeze and fresh inflows boost market momentum
According to CoinGlass data, liquidations surged sharply, rising 321% to $431 million over the past 24 hours, as short sellers were caught off guard by the recovery. Open interest across crypto futures climbed 7.03% to $167 billion, indicating that traders are reopening positions and returning to the market after weeks of defensive positioning.
Average relative strength readings also improved, with the market’s RSI at 64, suggesting that momentum is leaning positive but not yet overextended. The Altcoin Season Index, which tracks relative performance between Bitcoin and alternative tokens, stayed neutral at 43, implying a balanced rotation rather than a full shift into altcoins.
Analysts say the sharp move likely reflects short-term positioning unwinds rather than a fundamental breakout, but stronger technical setups in Bitcoin and Ethereum have started to attract fresh spot demand.
Cooling U.S.-China trade tensions lift investor sentiment
Optimism returned after weekend reports suggested that Washington and Beijing had reached a preliminary agreement to ease trade restrictions. U.S. Treasury Secretary Scott Bessent said the government was “no longer considering” 100% tariffs on Chinese imports, remarks that helped calm global markets.
The development fueled risk-on momentum worldwide. Japan’s Nikkei 225 crossed 50,000 for the first time, Korea’s KOSPI topped 4,000, and U.S. stock futures climbed between 0.3% and 0.9%. Crypto assets, which often mirror equity sentiment, rallied alongside.
Adding to the optimism are growing expectations of a Federal Reserve rate cut at its upcoming meeting on October 29. Futures markets now price in an 85% chance of a 25-basis-point cut, with a high probability of another in December.
Softer inflation data in recent weeks has strengthened the case for easier policy, which tends to benefit digital assets by lowering funding costs and boosting liquidity. A dovish tone from the Fed could extend the rally toward $120,000 for Bitcoin, while any hawkish surprises or disappointing data could lead to a retest of the $110,000 zone.