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Cryptocurrency prices are currently stabilizing after a turbulent weekend that saw a major dip and evolving macroeconomic sentiment.
Overview
- Bitcoin has risen above $110K as the total cryptocurrency market cap increases by 3%.
- Improving relations between the U.S. and China, coupled with optimism surrounding ETFs, support the rebound.
- Coinbase anticipates a strong Q4 propelled by increased liquidity and demand for stablecoins.
The total value of the global cryptocurrency market has grown by 3% in the last 24 hours, reaching $3.8 trillion, recovering from last weekend’s flash crash that led to over $20 billion in liquidations.
Bitcoin has risen by 1.2% to trade above $110,000, while Ethereum is up 2%, now priced at $4,041 after previously dipping to around $3,700. Other cryptocurrencies like BNB, XRP, and Solana have seen gains between 1% and 2%. However, market sentiment continues to be cautious, with the Crypto Fear & Greed Index remaining steady at 29, indicating “fear.”
Data from CoinGlass shows that liquidations surged to $440 million, reflecting a 209% increase from the prior day, as leveraged traders encountered renewed volatility. Total open interest increased by 3% to reach $152 billion, and the Altcoin Season Index stands at 39, suggesting a neutral trend.
Improved trade relations boost market recovery
A significant factor in today’s market recovery is the announcement that senior officials from China will convene with U.S. representatives this week to discuss trade matters prior to the APEC Summit in South Korea.
This meeting was confirmed by Treasury Secretary Scott Bessent and acknowledged by Chinese state media, occurring amid rising trade threats that have stoked concerns of further tariffs.
Recently, China proposed restricting shipments of rare earth minerals to the U.S., a move that could disrupt essential manufacturing sectors. The nation has also signaled potential retaliation against any new tariffs, indicating decreasing reliance on American chips.
If the forthcoming discussions yield positive outcomes, analysts predict that it could alleviate global uncertainty and rejuvenate interest in risk assets like Bitcoin and Ethereum.
Short-term factors fueling optimism
Several upcoming developments might help maintain the recovery momentum. The Federal Reserve’s FOMC meeting on October 28–29 is expected to implement a 25 basis point rate cut, which has already been priced in by futures markets at 95%. Lower interest rates typically weaken the dollar and bolster risk assets like Bitcoin.
Additionally, new filings for spot and altcoin ETFs, including proposals for Solana and XRP, are creating a buzz as their approval dates approach. Analysts foresee that such approvals could attract institutional capital, further boosting the market.
According to a recent report from Coinbase Institutional, three major trends are shaping the final quarter of the year: growing adoption of stablecoins, heightened global liquidity, and a clearer policy trajectory.
The report notes that trading and issuance of stablecoins are at peak levels this year, while the global money supply continues to rise.
Together, these factors indicate a more stable outlook for cryptocurrency markets as monetary conditions ease and institutional involvement increases.
