The new week began on a positive note for cryptocurrencies, continuing the gradual recovery seen over the past several sessions. Bitcoin rose nearly 3% in the past 24 hours, trading just below $115,000 after briefly touching $116,000 earlier in the day.
Ethereum gained more than 5%, climbing back to around $4,150. BNB, Solana, and Dogecoin each advanced about 3%, while XRP slipped 1% to $2.61, though it remains up 6% for the week.
The overall crypto market capitalization increased by 3%, reaching $3.89 trillion, supported by improved sentiment and rising optimism across broader financial markets. While prices remain slightly below levels seen earlier this month, major assets are still near record highs in a longer-term view, with Bitcoin and Ethereum both holding well above key technical thresholds.
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Sentiment
Market sentiment has continued to recover. The Crypto Fear and Greed Index now reads 51, marking a return to neutral territory for the first time since mid-October. The indicator has risen steadily from last week’s “fear” levels, signaling a normalization in market mood after earlier geopolitical volatility.
CoinMarketCap’s equivalent index also shows a neutral stance, at 42, reflecting cautious optimism. Selling pressure across spot and futures markets has eased significantly in recent days, while funding rates remain near neutral. Analysts note that this shift suggests aggressive selling has largely subsided, allowing markets to stabilize ahead of key macroeconomic events.
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Macro Backdrop
This week brings several major developments for global markets. The U.S. Federal Reserve is expected to announce a 25-basis-point interest rate cut at Wednesday’s FOMC meeting, following delayed inflation data that showed softer-than-expected price growth. Traders will closely watch Fed Chair Jerome Powell’s press conference for any guidance on future policy, with markets pricing in the possibility of two or three additional cuts by year-end.
At the same time, investors are monitoring the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping, scheduled for Thursday in South Korea. Treasury Secretary Scott Bessent said over the weekend that both sides have reached a “substantial framework” for a potential trade deal, easing fears of a new tariff escalation. The comments have boosted confidence across global markets, with many now expecting the planned 100% tariff increase to be postponed or canceled.
The U.S. government shutdown continues into its fourth week, delaying several key reports and temporarily halting progress on pending crypto ETF approvals. Market observers note that while the shutdown has not materially affected pricing, the ongoing data blackout has added a layer of uncertainty for investors evaluating macro trends.
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Traditional Markets
U.S. stock futures rose in early Monday trading, with optimism driven by expectations of both monetary easing and progress in trade negotiations. Futures linked to the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 gained between 0.5% and 1%. Investors are also preparing for a busy week of corporate earnings, with major technology companies – including Apple, Microsoft, Alphabet, Amazon, and Meta – set to report third-quarter results.
Gold prices fell nearly 2% as safe-haven demand weakened on improved U.S.–China relations, while oil stabilized after sharp moves earlier this month. Analysts say markets are entering a period of heightened volatility potential, as both policy and geopolitical outcomes over the next several days could reshape investor positioning across risk assets.
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Outlook
The recovery in digital assets continues to align closely with broader market trends. Analysts see potential for further upside if the Fed delivers a dovish tone and if the Trump-Xi summit confirms progress on trade. However, risks remain tied to macro conditions, policy uncertainty, and the ongoing U.S. shutdown.
For now, the crypto market appears to be regaining its footing – supported by easing selling pressure, improving liquidity conditions, and stabilizing sentiment after a volatile start to the month.
