What’s Driving Today’s Cryptocurrency Market Surge?

Key Points

• Major cryptocurrencies Bitcoin and Ethereum experience significant price increase.
• The crypto market rally is attributed to easing US-China trade tensions and potential Federal Reserve rate cuts.

The cryptocurrency market is experiencing a rise, with leading cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) witnessing significant price surges.

The overall crypto market is making a strong comeback following a prior slump due to fears surrounding US-China tariffs. As it stands, Bitcoin seems poised to guide the market towards a new multi-week high.

Rapid Recovery of Bitcoin and Ethereum

In the early hours of October 27, the total cryptocurrency market cap increased by roughly 1.9% to hit $3.92 trillion.

Bitcoin’s price surged to $115,956, marking an approximately 4% rise. This increase is noteworthy considering the leading cryptocurrency had been suffering losses in recent days.

With this latest gain, BTC has surpassed the 50-day exponential moving average at $114,176.

It has also bounced back from the October 10 market crash, which was triggered by President Trump’s announcement of a potential 100% tariff on China.

This announcement led to a drop in the prices of several cryptocurrencies, including Bitcoin, which fell to as low as $103,000.

Currently, market bulls anticipate that the coin will retest the $120,000 level, and potentially exceed its all-time high (ATH) of $126,000.

Simultaneously, Ethereum’s price also rose by 7.7% to trade at $4,253. Other cryptocurrencies like XRP, Solana, and even Dogecoin are also experiencing similar surges, although they remain below some established resistance levels.

Fed Reserve Rate Cut Expectations Spark Crypto Price Rally

The ongoing crypto market rally is believed to be driven by easing US-China trade tensions and growing expectations for Federal Reserve rate cuts.

Traders and investors are repositioning themselves in anticipation of the October 29 Fed meeting. The CME’s FedWatch Tool currently indicates nearly a 99% probability of a 25-bps rate cut.

Additionally, the US and China reached an agreement on October 26 following two days of negotiations in Malaysia.

According to US Treasury Secretary Scott Bessent, the negotiators established a “very substantial framework” that would help prevent threatened 100% US tariffs and secure a pause on China’s rare-earth export restrictions.

So far, the crypto market has seen only slight fluctuations, with Bitcoin now trading at $115,287.40 and Ethereum at $4,160.18.

With both major assets showing renewed strength, this could be an ideal time to reassess your portfolio and decide which crypto to buy in 2025.