Morning Minute: Crypto Rips On US China Trade Deal Hopes

The cryptocurrency market saw significant gains over the weekend, with around $150 billion added to its total market capitalization. This surge was driven by optimism surrounding a potential trade deal between the United States and China, as negotiators indicated progress toward reducing tariffs. Bitcoin increased to above $115,000, representing a rise of approximately 5%, while Ethereum reclaimed the $4,100 mark. The overall positive sentiment led to a rotation of investments from safer assets like gold and treasuries into riskier assets, with cryptocurrencies outperforming traditional stocks. Analysts noted that any signs of cooling trade tensions are perceived as bullish for risk assets, including cryptocurrencies. If tariff reductions continue and negotiations yield further progress, it may foster increased investments in crypto, particularly leading into the end of Q4. Despite the optimistic outlook, caution remains due to the presence of sellers in the market, suggesting that the bullish trend may not be fully sustainable just yet.

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