Bitcoin (BTC) surpassed the $115,000 level over the weekend, reaching its highest level in the last two weeks. BTC rose 3% in the last 24 hours, while Ethereum (ETH) gained 6% to $4,187. XRP and BNB gained 2%, and Solana gained 5.7%.
These price movements are not temporary jumps, but part of a sustainable trend driven by tightening on-chain supply, technical indicators, and macroeconomic support, said BTC Markets analyst Rachael Lucas.
The rise was fueled by reports that the US and China will reach an agreement on a framework for a trade deal during their meeting in South Korea next week. Markets are reacting positively to a potential improvement in US-China relations, which is providing support to risk assets, particularly cryptocurrencies, according to Lucas.
Additionally, the expectation of a 25 basis point rate cut at this week's Fed meeting is boosting investor appetite. CME Group's FedWatch tool shows a 96.7% probability of a rate cut.
During this rally, approximately $347.5 million worth of short positions were liquidated. This is a typical short squeeze; bearish investors were forced to close positions, accelerating the price rally, said Vincent Liu, CIO of Kronos Research.
Analysts predict that Bitcoin could rise to the $130,000-$150,000 range towards the end of the year, driven by the traditional “Christmas Rally.”