Bitcoin News Today: Trade Truce and Fed Cuts Spark Crypto's Golden Resilience

Fundstrat's Tom Lee, a longtime bull for cryptocurrencies, has intensified his forecast for a market rebound, citing easing US-China trade tensions and potential Federal Reserve rate cuts as key catalysts, according to a Live Bitcoin News report. The crypto market, reeling from a $19 billion liquidation event in early October triggered by Trump's 100% tariff threats, has since stabilized, with Bitcoin rebounding to $113,500 and Ethereum nearing $4,040 as optimism grows.

The recent trade framework agreed upon by US Treasury Secretary Scott Bessent and Chinese officials has alleviated fears of a prolonged trade war, with both sides agreeing to defer tariffs and rare-earth export curbs, as Cointelegraph reported. Bessent described the deal as a "very substantial framework," noting it removes the immediate threat of Trump's tariff escalation and paves the way for further negotiations. This development has injected renewed confidence into risk assets, with Bitcoin and Ethereum surging 1.8% and 3.6%, respectively, following the announcement, as Bitget reported.

Lee's bullish stance is bolstered by improving technical indicators, including record-low open interest levels for Bitcoin and Ethereum, signaling reduced speculative pressure and a potential bottoming process, as Coinotag reported. He also highlighted JPMorgan's recent openness to using crypto as collateral as a "pretty bullish signal," suggesting institutional adoption is gaining momentum, a point covered by a TradingView report. The Fundstrat head of research reiterated that the crypto market's resilience—Bitcoin's limited 3-4% drop during the October deleveraging—mirrors gold's stability during economic stress.

Meanwhile, the Federal Reserve's potential rate cuts have added to the positive outlook. Recent inflation data, including a September CPI of 3% (below the median forecast of 3.1%), has increased the likelihood of rate reductions in 2025. Historically, lower interest rates have supported risk assets by reducing borrowing costs and boosting liquidity, factors Lee argues will fuel a broader crypto rally.

Easing trade tensions and Fed policy shifts are not the only drivers. Ethereum's underlying network activity, particularly on Layer 1 and Layer 2 solutions, has surged due to stablecoin adoption, even as prices lag. This growth underscores the asset's utility beyond speculative trading, a point Lee emphasizes as critical for long-term adoption.

However, the market remains cautious. While the current framework has calmed immediate fears, analysts warn that a collapse in negotiations could reignite volatility. Additionally, Bitcoin's path to $2 million—a bold prediction from Lee and others—requires a radical restructuring of global financial systems, including a shift away from traditional assets, a debate highlighted by Yahoo Finance.