Major cryptocurrencies including Bitcoin (BTC-PKR) and Ethereum (ETH-PKR) registered substantial gains, helping the overall crypto market cap climb near US $3.92 trillion. BTC reportedly rose approximately 4 percent to trade above $115,900, while ETH surged around 7.7 percent to approximately $4,253.
The report attributed this upswing to a combination of waning U.S.-China trade tensions and mounting expectations for a forthcoming interest rate cut from the Federal Reserve (Fed). As markets anticipate the Fed meeting scheduled for October 29, traders are positioning for more accommodative monetary policy.
Macro Drivers Re Entering the Frame
Analysts noted that the crypto rally coincided with a reported U.S.-China agreement concerning trade and rare earth exports, which helped ease fears of a full trade war escalation. The reduced risk premium for global assets shifted attention back to growth oriented sectors, including crypto.
Meanwhile, the FedWatch Tool from the CME Group suggested nearly a 99 percent probability of a 25 basis point rate cut at the upcoming meeting, bolstering asset price appetite across digital and traditional markets.
Implications for Traders and Investors
Momentum gains matter as BTC’s reclaiming of the $115K level and ETH’s rapid jump reflect a renewed risk-on posture in crypto. With ETH and other altcoins joining the move, market breadth appears to be improving, potentially opening rotation opportunities beyond Bitcoin.
This rally also underscores how crypto is once again responding to broad macro signals such as trade policy and central bank guidance, rather than purely internal factors. However, given the speed of the surge and heightened speculative positioning, short-term corrections remain possible, especially if macro indicators fail to meet market expectations.
One thing that the investors have to bear in mind is that these surges are momentary, as crypto-coins are highly volatile in general.