The cryptocurrency market is showing strong signs of a new bull run, with Bitcoin climbing to $115,000 for the first time in several weeks. The rally has lifted the prices of major altcoins too, as traders regain confidence in digital assets.
In the last 24 hours alone, Zcash has surged by 27% to around $364, while Pi Network and Dash have jumped by 15% and 22%. The overall market capitalization of all cryptocurrencies has grown by nearly 4% to $3.89 trillion. Trading activity has also exploded, with total daily volume soaring more than 64% to $138 billion, suggesting a sharp return of investor interest.
The rise in crypto prices mirrors a positive mood in global stock markets. Asian indexes like Japan’s Nikkei 225 and Hong Kong’s Hang Seng continued their strong rallies, while U.S. futures linked to the Nasdaq 100, S&P 500, and Dow Jones also traded higher.
A key reason for the crypto rally is the outcome of recent trade talks between the United States and China. The discussions ended on a positive note, with both sides reaching agreements expected to be signed by Presidents Donald Trump and Xi Jinping later this week at the APEC summit in South Korea. If finalized, the deal could reduce tariffs and ease global inflation pressures. Just weeks ago, Trump’s threat of a 130% tariff on Chinese goods triggered panic across financial markets and led to a $20 billion wipeout in crypto positions. The new deal now gives investors hope for stability.
Another major factor driving the rally is anticipation of the Federal Reserve’s upcoming interest rate decision. Economists expect the Fed to cut rates by 0.25%, lowering them to a range between 3.75% and 4%. This would mark the second consecutive cut, reflecting weaker job growth and easing inflation. Lower interest rates usually benefit cryptocurrencies, as investors tend to move money away from traditional savings into riskier assets like Bitcoin and Ethereum.
Adding to the optimism, well-known crypto analyst Tom Lee told CNBC that he expects the crypto market to see a strong end-of-year rally. He pointed out that Bitcoin and Ethereum supply on exchanges has been falling, meaning fewer people are selling, while institutional demand keeps growing. Spot Bitcoin and Ethereum ETFs have already attracted more than $64 billion and $14 billion in assets, signaling strong interest from large investors.
However, not everyone is convinced this is the start of a long-term bull market. Some analysts warn that the current rally could be a short-lived “dead cat bounce,” where prices rebound temporarily before falling again. Much will depend on how markets react to the Federal Reserve’s decision and whether the U.S.-China agreement holds firm in the coming weeks.
For now, though, excitement has returned to the crypto space, with traders eyeing $120,000 as Bitcoin’s next big target if the bullish momentum continues.
