Bitcoin News Today: Bitcoin jumps 10% amid Trump peace talks optimism and higher Fed rate cut odds

Bitcoin's price surged past $116,500 amid renewed optimism over potential peace developments following discussions involving former U.S. President Donald Trump and global leaders. The cryptocurrency’s rally was closely tied to Trump’s public remarks on the ongoing peace efforts between the U.S., Ukraine, and Russia, which have sparked market speculation about reduced geopolitical tensions and increased economic stability [4]. Trump met with Ukrainian President Volodymyr Zelensky and delivered a joint press conference, signaling a potential shift in the conflict’s trajectory. His comments emphasized Russia’s willingness to resolve the situation and highlighted the possibility of future trilateral talks, although no concrete agreements were announced [1].

The rise in Bitcoin’s value came on the heels of broader geopolitical developments, including a meeting between Trump and EU leaders, where peace efforts were evaluated alongside future security commitments to Ukraine [8]. While Trump expressed optimism about a constructive resolution, he acknowledged the difficulty of predicting an exact timeline for the conflict's conclusion. “I am assured of our ability to address the conflict constructively, yet predicting an exact conclusion remains challenging,” he stated [1].

Market observers noted that the cryptocurrency's recent performance was also influenced by macroeconomic factors, including expectations around U.S. Federal Reserve policy. The probability of a September rate cut had risen to 84.6%, according to the CME FedWatch Tool, offering additional support to risk assets [9]. Bitcoin had previously reached a record high of $124,474 before retreating below $116,000 amid inflation concerns and technical sell-offs [3]. However, the 10% rally on August 18 signaled a return of investor confidence, particularly among those betting on long-term stability driven by geopolitical progress [4].

The connection between Bitcoin and global political developments has become increasingly evident, with the cryptocurrency's price reflecting not only technical and macroeconomic shifts but also diplomatic progress. As investors await further updates from Trump’s meeting with EU leaders and the upcoming Jackson Hole Symposium, the market remains sensitive to geopolitical news and central bank decisions [10]. The potential for a ceasefire agreement, enhanced international security frameworks, and reduced volatility in global financial markets remain key themes in the ongoing narrative [1].

[1] CoinMarketCap, https://coinmarketcap.com/community/articles/68a367bea11d1371a43ef08d/

[4] MSN, https://www.msn.com/en-za/news/other/shares-cling-to-hopes-for-tariff-relief-bitcoin-jumps/ar-AA1A7gst?apiversion=v2&batchservertelemetry=1&domshim=1&noservercache=1&noservertelemetry=1&renderwebcomponents=1&wcseo=1

[8] Offshore, https://energynews.oedigital.com/crude-oil/2025/08/18/jackson-hole-global-stock-markets-fall-as-traders-wait-for-ukraine-talks

[9] AInvest, https://www.ainvest.com/news/bitcoin-news-today-fed-rate-cut-odds-hit-84-6-fueling-crypto-gains-volatility-2508/

[10] RTTNews, https://www.rttnews.com/3566996/european-markets-close-on-mixed-note-after-cautious-session.aspx