💹 Bitcoin Rebounds Above $110K as Trade Tensions Ease and Fed Pivot Looms

Bitcoin surged back above $110,000 on October 20, 2025, marking a sharp recovery from the historic sell-off that erased nearly $20 billion in leveraged positions just days earlier. The broader crypto market followed suit, with Ethereum climbing above $4,000 and total market capitalization regaining ground near $3.8 trillion.

🏛️ Trump Softens Tone Ahead of China Summit

The rebound came as President Donald Trump confirmed he will meet china president at the upcoming APEC Summit in South Korea. Striking a far more diplomatic tone, Trump told Fox News that his 100% tariff threat was “not sustainable,” adding that Xi is “a very strong leader” and that both sides want a “fair deal.”

Treasury Secretary Scott Bessent later confirmed ongoing talks, while China’s Commerce Ministry signaled openness to continued negotiation — easing geopolitical tensions that had rocked global markets.

💵 Fed Rate Cut Bets Boost Risk Appetite
Crypto sentiment also improved on expectations of a Federal Reserve rate cut at the October 28–29 meeting. Futures markets now price in a 99% chance of a 25bps reduction, lowering rates to 3.75–4.00%. Fed Chair Jerome Powell’s dovish stance, citing labor market risks, has reinforced bets that further easing will follow this year.

Lower rates typically bolster non-yielding assets like Bitcoin, reducing the opportunity cost of holding crypto and fueling speculative inflows into risk assets.

📊 Outlook: Volatility with an Upward Bias
While Bitcoin’s rebound signals renewed market confidence, it still trades 12% below its all-time high above $125,000. Analysts caution that volatility may persist ahead of the U.S. inflation data release on Friday summit, both potential catalysts for short-term price swings.

Still, the combination of geopolitical de-escalation and monetary easing marks a powerful setup for crypto markets seeking direction — and possibly, their next major breakout#MarketRebound