Today's encryption market ( October 27 ): BTC, ETH, XRP, BNB regain strength, market rebounds 3.5%.

Affected by the dual favourable information of the easing of China-US trade tensions and the rising expectations of Fed interest rate cuts, Crypto Assets prices have risen for the second consecutive trading day. The total market capitalization of global Crypto Assets increased by 3.5% in 24 hours, reaching $3.98 trillion. Bitcoin (BTC) price surged to $115,102, while Ether (ETH) experienced a big pump of 6.8% to $4,199. Even more noteworthy is that the short positions liquidation volume soared by 321% to $431 million, indicating that shorts were caught off guard by the sudden rebound. Market sentiment has shifted from “fear” to “neutral”, showing that investors' risk appetite is returning.

Favourable Information Driven by Macroeconomics: Bitcoin Breaks Through the 115,000 USD Barrier

After experiencing a sharp sell-off in early October due to trade concerns and liquidation pressures, risk assets are rebounding strongly. The easing of Sino-U.S. trade tensions, along with expectations of an imminent rate cut by the Fed, provides a solid macro foundation for this wave of rise.

Market Data Overview

The easing of trade tensions boosts global risk appetite.

Last weekend, reports indicated that China and the United States had reached a preliminary agreement to ease trade restrictions. U.S. Treasury Secretary Scott Bessent's statement that the government is “no longer considering” imposing a 100% tariff on Chinese imports successfully soothed global market sentiment.

Global Resonance: This development has sparked a risk appetite worldwide. The Nikkei 225 index in Japan has historically broken through 50,000 points for the first time, the KOSPI index in South Korea has surpassed 4,000 points, and U.S. stock index futures have generally risen. Crypto Assets, as a risk asset highly correlated with stock sentiment, have also strongly rebounded.

The Fed's interest rate cut expectations become a key catalyst

Another key optimistic factor is the market's strong expectation of the Fed lowering interest rates at the upcoming meeting on October 29.

• High probability of rate cuts: The futures market currently estimates an 85% probability of a 25 basis point rate cut, and there is also a high possibility of another rate cut in December.
• Benefits of digital assets: Recent softer inflation data has supported easing policies, which typically reduce financing costs and boost liquidity, thereby favouring digital assets.

Short Positions Bloodbath: Liquidations Surge 321%

The main characteristic of this rebound is the severe short squeeze. According to CoinGlass data, the total liquidation soared by 321% in the past 24 hours, reaching an astonishing 431 million USD, which indicates that many short positions were caught off guard by the sudden recovery.

The market momentum indicator is warming up.

• Unsettled Contracts Rebound: The total amount of unsettled contracts in crypto futures has risen by 7.03% to $167 billion, indicating that traders are reopening positions and returning to the market after weeks of a defensive stance.
• Sentiment Shift: The Crypto Assets Fear and Greed Index has shifted from “Fear” to a “Neutral” level of 51. Although traders remain cautious, their willingness to take on risk has increased.
• RSI index improvement: The average Relative Strength Index (RSI) improved to 64, indicating that momentum tends to be positive, but has not yet reached overbought conditions.

Analysts believe that although this sharp rise may be more a result of short position liquidations rather than a fundamental breakthrough, the stronger technical setups in Bitcoin and Ethereum have started to attract new spot demand.

Investment Outlook and Operational Suggestions

The Altcoin Season Index is currently at a neutral level of 43, suggesting that the current rotation of funds is balanced and not fully turning towards altcoins.

• The Fed's dovish stance may push the rise towards Bitcoin's higher range of 120,000 USD.
• Operational advice: Investors should be wary of any hawkish surprises or disappointing economic data, which could lead the market to retest the support area of $110,000. Currently, the macro trend supports continuing to hold long positions, but close attention must be paid to the results of the Fed meeting.

Conclusion

The optimistic shift in the macroeconomic situation (the easing of US-China trade tensions and expectations of interest rate cuts) has provided the much-needed catalyst for the crypto market. With short positions being ruthlessly liquidated, Bitcoin and Ether prices have staged a strong rebound. This surge, driven by external economic events, once again demonstrates the high correlation between crypto assets and global financial markets. The upcoming interest rate decision by the Fed will be the next key test for the market, and its outcome could very well determine whether Bitcoin can move towards $120,000.

Disclaimer: This article is for news information only and does not constitute any investment advice. The crypto market is highly volatile, and investors should make decisions with caution.