A crypto rally is underway, with the market capitalization of all tokens surpassing $3.9 trillion. Bitcoin price jumped to over $114,000 for the first time in over two weeks. Other top gainers in the crypto market were Zcash, Akash Network, Dash, and Falcon Finance.
Crypto Rally Triggered by US and China Trade News
The main reason for the crypto rally is that the US and China are moving closer to a trade deal ahead of the upcoming Donald Trump-Xi Jinping meeting at the APEC summit.
In a statement, Chinese and US officials noted that the two sides had largely reached an agreement on key issues. This happened after the two sides held talks in Malaysia.
Scott Bessent, the Treasury Secretary, noted that the two sides had reached an agreement on several issues. For example, he noted that China would make substantial soybean purchases, delay its rare earth export controls for a year, and potentially develop a global peace plan. He said:
“So I would expect that the threat of the 100% has gone away, as has the threat of the immediate imposition of the Chinese initiating a worldwide export control regime.”
This progress means that the trade deal may ultimately be signed on Thursday when Trump and Xi meet.
A deal between the US and China will be bullish for the crypto market because it largely eliminates one of the top risks plaguing the market lately.
READ MORE: Zcash Price Prediction as a Key ZEC Fund Crosses $100M Milestone
Hopes of Federal Reserve Rate Cuts and Strong Corporate Earnings
The crypto rally is happening as investors remain optimistic that the Federal Reserve will cut interest rates on Wednesday. The CME Fed Futures tool has odds of cuts at over 95%.
The same is happening on Polymarket and Kalshi, two of the biggest prediction markets, where odds have jumped to over 96%. These odds have jumped in the past few days after the US published weaker-than-expected consumer inflation data.
The crypto market is also rising as investors await upcoming earnings from some of the biggest US companies, including Microsoft, Apple, Amazon, and Meta Platforms.
There is a likelihood that these companies will publish strong financial results. Data compiled by FactSet shows that 83% of companies in the S&P 500 Index have reported earnings, with average growth of 9.2%.
READ MORE: Tom Lee Predicts Crypto Rally: 4 Catalysts for a Bull Run
