BTC pushes past $111,000 on hopes of US-China trade breakthrough
BTC surged past the $111,000 mark on Friday, driven by investor optimism over a potential breakthrough in trade relations between the United States and China. The rally marks the cryptocurrency’s highest level in several months and comes as global markets react positively to reports of progress toward renewed talks between Washington and Beijing.
Analysts say the crypto market’s reaction underscores BTC’s growing role as a macro-sensitive asset, with traders increasingly linking its movements to global policy expectations. Hopes of easing trade tensions have sparked optimism that improved liquidity conditions and stable monetary policies could extend the ongoing bull cycle across risk assets.
Positive macro sentiment drives crypto rally
The broader digital asset market followed BTC’s upward trajectory. ETH climbed above $4,000, Solana rose over 8%, and Avalanche and Chainlink each recorded double-digit gains in 24-hour trading. The total crypto market capitalization jumped to $4.2 trillion, reflecting renewed investor appetite for risk as uncertainty over interest rate hikes continues to fade.
Market data from CoinGlass showed over $350 million in short positions were liquidated across major platforms later than BTC broke the $110,000 resistance level. Analysts note that the rapid liquidations contributed to the sharp price surge, pushing BTC to its highest levels since mid-year.
According to multiple reports, senior US and Chinese officials are preparing for high-level discussions aimed at rebuilding trust and addressing ongoing trade disputes. The prospect of a diplomatic breakthrough has improved investor sentiment across global markets, with equities, commodities, and cryptocurrencies all showing synchronized gains.
Institutional demand returns as volatility eases
Beyond retail enthusiasm, institutional demand appears to be strengthening. Open interest in BTC futures on platforms like CME and Binance hit multi-month highs this week, while ETF inflows have continued to climb steadily. Analysts at Galaxy Digital and Matrixport pointed out that macro stability between the US and China could encourage large funds to allocate more capital into digital assets as an alternative hedge.
Still, caution remains among traders who note that the rally could face resistance if talks falter or if the Federal Reserve shifts back toward a hawkish stance. Any renewed volatility in traditional markets or disruptions in global trade flows could rapidly reverse gains.
As of this time, BTC was trading around $111,200, up 4% on the day and 11% for the week. Analysts suggest that if momentum continues and macro conditions remain favorable, BTC could retest the $115,000 level before the end of the month.
The ongoing rally highlights BTC’s increasing correlation with macroeconomic developments and its expanding appeal among institutional investors. With optimism over a US-China trade thaw driving markets, digital assets appear poised to maintain their upward trajectory into the final quarter of 2025.
