Bitcoin Firms Above $113K as Traders Brace for Fed Cut, BOJ Decision, and Trump–Xi Meeting
Major cryptocurrencies extended gains Sunday, lifted by growing expectations of a Federal Reserve rate cut, steady policy from the Bank of Japan (BOJ), and optimism surrounding a Trump–Xi trade summit later this week.
Bitcoin (BTC) climbed 1.7% over the past 24 hours to around $113,600, marking its third straight daily advance as buying momentum strengthened near the 200-day moving average at $108,800. The next hurdle lies near $114,250, where the 50-day SMA currently sits.
Among altcoins, XRP rose 3%, regaining its 200-day average at $2.60, while Ether (ETH) and Solana (SOL) each added about 3%, reflecting a broad rebound in risk appetite.
Fed Expected to Deliver 25bp Cut
Markets are fully pricing a 25-basis-point reduction in the Fed’s policy rate to 4% on Wednesday — its sixth cut since September 2024. Another move is widely anticipated at the December meeting, extending total easing to 150 basis points.
The focus will fall on Chair Jerome Powell’s press conference, where he’s expected to reaffirm that labor market weakness now outweighs inflation risks. Powell may also elaborate on comments hinting that the Fed is nearing the end of quantitative tightening (QT) as liquidity tightens across the banking system.
Global Policy and Earnings in Play
The BOJ is set to announce its policy decision Thursday, with economists expecting no immediate rate change but fresh forecasts that could shape yen volatility. Markets are already pricing a small rate cut in early 2026.
Meanwhile, earnings from Apple, Meta, Microsoft, and Alphabet — part of the “Magnificent 7” — are due this week. Investors will watch closely for signs of continued AI-driven capital spending, which has supported global equity and crypto sentiment since 2023.
Trade Hopes Add Tailwind
U.S.–China relations also entered a calmer phase after officials confirmed progress toward a trade deal. Presidents Donald Trump and Xi Jinping are expected to meet Thursday in South Korea on the sidelines of the APEC Summit, a key catalyst for maintaining the current risk-on tone.
Overall, easing policy expectations and improving trade signals have rekindled optimism across digital assets — with Bitcoin once again mirroring broader liquidity trends rather than inflation fears.
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