Investor Sentiment Surges Amid U.S.-China Summit, Rate Cuts, and Binance Coin Rally

Optimism among investors is on the rise as anticipation builds for an upcoming summit between U.S. President Donald Trump and Chinese President Xi Jinping. Coupled with expectations for interest rate reductions, this has rejuvenated risk appetite across financial markets. Notably, Binance Coin (BNB) has surged following news of Trump pardoning Binance founder Changpeng Zhao (CZ), which has further bolstered the cryptocurrency market as a whole, lifting Bitcoin (BTC), Solana (SOL), and other altcoins.

As of 8:40 a.m. KST on October 24, Bitcoin (BTC) was trading at 165.49 million won on South Korea’s Upbit exchange, marking a 1.45% increase compared to the previous day. On Binance, BTC recorded a 2.08% gain, reaching $110,019. Meanwhile, the CoinDesk 20 index, which tracks the top 20 altcoins, showed a robust increase of 2.68% during the same timeframe. Within this surge, Ethereum (ETH) climbed by 1.32% to $3,854, while XRP rose 1.26% to $2.39. However, Binance Coin (BNB) outpaced its peers, soaring 4.73% on the back of the pardon announcement.

The Impact of Liquidations on Crypto Price Movements

The ongoing rally was heavily influenced by significant liquidations, which added upward momentum to cryptocurrency prices. Coinglass data revealed that approximately $62.49 million (89.8 billion won) worth of Bitcoin positions were liquidated over the past 24 hours, with 77% of these being short positions. Across the broader digital asset market, total liquidations reached $229 million (329.1 billion won). This short squeeze phenomenon amplified positive price movements, further boosting overall market sentiment.

Optimism in U.S. Equity Markets: Trade Discussions and Inflation Data

In the U.S. stock market, trade optimism following the announcement of the November 30 meeting between Presidents Trump and Xi Jinping helped buoy investor sentiment. The easing of U.S.-China trade tensions was reflected in key indices. The Dow Jones Industrial Average edged up by 0.31% to close at 46,734.61, while the S&P 500 rose 0.58% to finish at 6,738.44. Leading the rebound was the Nasdaq Composite, which advanced 0.89% to 22,941.80, driven by renewed optimism around trade relations.

Attention also shifted to inflation data as investors anticipated the delayed release of September's Consumer Price Index (CPI), scheduled for November 25. Bloomberg analysts expect core CPI to rise 0.3% month-on-month, maintaining an annual growth rate of 3.1%.

Jose Torres, an economist at Interactive Brokers, suggested that if the CPI matches projections, the Federal Reserve is likely to implement another interest rate cut in October. Contrasting this view, Emily Bowerstock Hill, founding partner at Bowerstock Capital Partners, noted, "The Fed seems to focus more on stabilizing the labor market than addressing inflation concerns. I don’t foresee the CPI having a direct impact on next week’s rate decision." Nonetheless, Hill predicted two rate cuts to follow later this year—in October and December—offering further potential tailwinds for risk assets.

Binance Coin's Meteoric Rise Following Changpeng Zhao Pardon

While Bitcoin and other digital currencies saw incremental gains driven by rate cut optimism, Binance Coin (BNB) stole the spotlight after Trump pardoned Binance founder Changpeng Zhao.

Zhao had originally faced charges in November 2023 for violating the Bank Secrecy Act, stemming from insufficient anti-money laundering (AML) measures. He subsequently pleaded guilty and stepped down as Binance’s CEO, accepting a plea agreement. In April 2024, he was sentenced to four months in prison and released in September the same year. The pardon absolves him of all criminal penalties and expunges his record.

Following the announcement, Binance released an official statement: “This pardon is incredible news. We are deeply grateful for President Trump’s leadership.” The resolution significantly boosted investor confidence, triggering an explosive rally in BNB.

Geopolitical and Monetary Shifts Fuel Market Resilience

The cryptocurrency market’s momentum appears to be driven by a combination of geopolitical developments and monetary policy changes. The easing of U.S.-China tensions, coupled with the potential for further rate cuts, has created an environment ripe for renewed optimism among traders and investors. As the year's final quarter unfolds, cryptocurrencies and equity markets are likely poised for sustained gains, underscoring the impact of intertwined global and fiscal factors.