Bitcoin recorded a notable rise during Monday’s trading session, benefiting from the cautious optimism that spread across markets following U.S. and Chinese statements indicating an easing of trade tensions between the two countries. This improvement in investor sentiment was immediately reflected in risk-driven assets, led by cryptocurrencies.
Bitcoin gained around 3.5%, trading near $110,600, after having recently dropped to about $103,000 amid escalating trade disputes between Washington and Beijing. Expectations that the U.S. Federal Reserve may move to cut interest rates in its upcoming meeting also supported demand for higher yielding assets, boosting appetite for digital currencies.
Meanwhile, U.S. markets continue to face the repercussions of the ongoing federal government shutdown, now entering its third week. The shutdown has delayed the release of several key economic reports, leaving investors cautious about the outlook for the world’s largest economy.
The latest upward move came after remarks by U.S. President Donald Trump, who stated that a prolonged trade war with China was “not sustainable,” adding that he is scheduled to hold talks with Chinese President Xi Jinping within the next two weeks.
Additionally, U.S. Treasury Secretary Scott Bessent confirmed that high-level trade negotiations would resume this week, reinforcing expectations that the U.S. administration might refrain from imposing 100% tariffs on Chinese imports. These statements offered reassurance to investors and helped restore momentum across markets after weeks of volatility, reflecting positively on both stock indices and cryptocurrency prices.
Alternative cryptocurrencies also benefited from the rebound. Ethereum rose by 4.1%, climbing back above the $4,000 mark to $4,057. XRP gained 4.2% to reach $2.45, while BNB advanced 3.6% to $1,130. Solana increased 3.2%, Cardano jumped 5.4%, Dogecoin gained 5.6%, and the $TRUMP token rose 2.2%.
Nonetheless, Bitcoin’s ability to hold above $110,000 may signal the early stages of a short-term trend reversal, provided the price consolidates at this level amid improving liquidity and rising trading volumes over the coming week.
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