• The new U.S. China’s trade system reestablished investor confidence which triggered a blistering rebound in Bitcoin ( +3.7 ) and Ethereum ( +6.9 ) with the help of a soaring volume of trade.
• Big institutions such as Sharplink Gaming and JPMorgan became more exposed to crypto, indicating a more intensive adoption of traditional finance and solidifying the optimism.
• The liquidity turned to high volume altcoins, such as Solana and XRP, which is an indication that there is an overall trend toward the rest of the market becoming uptrended.

World cryptocurrency markets jumped sharply today after the United States and China reached a new trade agreement, reversing months of uncertainty. The accord concluded on tap 100% tariffs between the two biggest world economies, restoring investors’ confidence in global risk assets worldwide. The mood shift essentially propelled Bitcoin, Ethereum, and several top altcoins as money drifted back into digital assets.

Bitcoin(BTC) led the way with a strong 3.7% gain to $113,378, underpinned by a 126% surge in volume of trades. Analysts say that every previous trade truce has before now triggered corresponding rallies, as occurred between 2019 and 2020. The renewed optimism and easing geopolitical tensions appear to have primed the pump for the following possible bullish cycle into Q4.

Bitcoin Breaks Resistance as Short Liquidations Spike

Bitcoin climbed above key resistance levels early Monday, reaching $115,243 before consolidating. The breakout resulted in over $300 million in short positions being liquidated across major exchanges. The move highlighted renewed investor conviction as traders shifted toward long exposure.

Ethereum followed closely, soaring 6.91% to $4,212 amid strong whale accumulation. Large holders increased their ETH positions while stablecoin inflows grew across major platforms. Institutional participation also expanded, with Sharplink Gaming allocating $80 million in ETH and JPMorgan beginning to accept crypto collateral for lending. These developments signaled stronger adoption within traditional finance, further supporting the bullish price action.

Altcoin Rotation Strengthens as Liquidity Expands

The market rally extended beyond Bitcoin and Ethereum, with Solana (SOL) climbing to $203.97 following the launch of Hong Kong’s first spot SOL ETF. The development marked another milestone for institutional access to digital assets. Meanwhile, XRP reclaimed its position as the third-largest cryptocurrency after securing a new institutional partnership with Hidden Road.

Altcoin liquidity rotation continued as traders diversified across high-volume assets. Solana maintained outperformance, supported by growth in DeFi and AI-driven trading protocols. Analysts observed that such rotation often precedes broader market breakouts when capital moves from large caps to mid-cap tokens.

Macroeconomic Trends Support Risk Sentiment

The global macro backdrop further supported the positive tone. IMF estimated the growth of global GDP to decelerate marginally to 3.2 by 3.3, and the developed economies were close to 1.5. Stronger growth was still recorded by emerging markets which are topped by India at 6.8. Nonetheless, trade friction, fiscal strain and market volatility were major risks.

Future actions of the Federal Reserve and Bank of Japan, as well as the MAG 7 earnings, and a possible Trump-Xi meeting, may drive things in the short-term. In case trade peace will be maintained and the interest rate will be cut, the analysts predict the sustained interest in risk assets, especially cryptocurrencies.

In general, the current rally highlighted the importance of policy changes across the world in terms of their ability to change the flow of digital assets in a short period of time. The crypto market emerged into the week with a strong bullish momentum, as people started to have renewed optimism and institutional involvement.