Bitcoin and Crypto Stocks Rise. The 2 Key Things Driving Today’s Rally.

The total value of all Bitcoin and other cryptocurrencies is around a combined $3.9 trillion. (Dreamstime)

Key Points

• Bitcoin increased by 1.4% to approximately $115,347, with other cryptocurrencies also gaining.
• Crypto-exposed stocks rose, including Strive by 35%, Strategy by 2.7%, and Coinbase Global by 1.1%.
• Anticipation of a Federal Reserve interest-rate cut and a potential U.S.-China trade agreement fueled the market gains.

Bitcoin and other cryptocurrencies were gaining on Monday, anticipating another interest-rate cut from the Federal Reserve and a trade agreement between the U.S. and China.

The price of the world’s largest cryptocurrency was up 1.4% over the past 24 hours, at around $115,347.

Crypto-exposed stocks were rising, too. Strive , a Bitcoin treasury company, was up 35%. While there was no clear trigger for such a big move, it appeared to be linked to social-media activity among retail traders that has driven large rises in several stocks in recent weeks.

Strategy , which used to be called MicroStrategy and is the largest corporate holder of Bitcoin in the world, was up 2.7%. U.S. crypto-exchange Coinbase Global gained 1.1%.

Bitcoin hit a new high of more than $124,000 earlier this month before paring some of those gains. Heightened tensions between Washington and Beijing were the main factor in that pullback.

Now the two sides seem hopeful of a lasting deal being struck when President Donald Trump and China’s Xi Jinping meet later this week.

Additionally, markets now see the chances of the Fed cutting interest rates by a quarter point this week as nearly certain after Friday’s September consumer price index report showed inflation at 3% last month.

Lower rates make risky assets such as stocks and digital tokens more attractive relative to interest-bearing investments such as bonds. Reduced rates also tend to weaken the dollar, which boosts crypto valuations.

Several large altcoins were rising. Ethereum rose 2.4% and Solana was up 0.7%. Memecoin Dogecoin was nearly flat, up 0.3%.

The broader stock market is getting a boost today, too. The S&P 500 , Dow Jones Industrial Average, and Nasdaq Composite are trading at record levels.

Write to Adam Clark at adam.clark@barrons.com