Bitcoin Price, Ethereum Rise. What’s Driving the Crypto Cheer.

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

Key Points

• Bitcoin’s price increased by 2.6% over the past 24 hours, reaching approximately $115,144, driven by optimism for a U.S.-China trade deal.
• The Federal Reserve is expected to cut interest rates by a quarter percentage point, making cryptocurrencies more attractive.
• Other cryptocurrencies also saw gains, with Ethereum rising 4.7%, Solana up 2.9%, and Dogecoin increasing by 2.0%.

Bitcoin and other cryptocurrencies were gaining on Monday amid optimism about the Federal Reserve cutting interest rates and a trade agreement being struck between the U.S. and China.

Bitcoin’s price was up 2.6% over the past 24 hours, at around $115,144.

The world’s largest cryptocurrency hit a new high of more than $124,000 earlier this month before falling back amid heightened tensions between Washington and Beijing. However, the two sides now 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 Federal Reserve cutting interest rates by a quarter point this week as nearly certain, especially after Friday’s delayed 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 4.7% and Solana was up 2.9%. Dogecoin, which is a memecoin, was gaining 2.0%.

Crypto-exposed stocks were rising. Strategy , which used to be called MicroStrategy and is the largest corporate holder of Bitcoin in the world, was up 4.2%. U.S. crypto-exchange Coinbase Global was gaining 2.9%.

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