Bitcoin Climbs for Three Consecutive Days as Bitcoin Cash and HyperLiquid Surge Nearly 9%

Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, extended its bullish momentum for a third straight day on October 26, reclaiming the $113,000 mark. Bitcoin Cash (BCH) and HyperLiquid (HYPE) both experienced significant gains of nearly 9%, driven by optimism surrounding progress in U.S.-China trade negotiations and heightened expectations of a Federal Reserve interest rate cut. These factors have fueled a surge in investor appetite for high-risk assets, including cryptocurrencies.

According to CoinMarketCap data, the total market capitalization of all cryptocurrencies rose by 1.76% within the last 24 hours, pushing the collective valuation to $3.84 trillion. Bitcoin itself gained 1.96% during this period, trading at $113,535 and breaking through a critical technical barrier—the 200-day moving average previously set at $108,800. This bullish breakout has alleviated selling pressure and allowed BTC to approach its next resistance level at $114,250, defined by the 50-day moving average.

Optimism around U.S.-China Trade Talks Lifts Market Confidence

Investor sentiment received a notable boost following promising developments in U.S.-China trade discussions. U.S. Treasury Secretary Scott Besent confirmed that both Washington and Beijing had made progress toward a tangible trade agreement, softening tensions that had previously unsettled global markets. Besent’s remarks also suggested that President Donald Trump may repeal his proposed 100% additional tariffs scheduled to take effect on November 1. This promising turn in negotiations has infused markets with optimism, sparking a rally across various risk assets, cryptocurrencies included.

The easing of trade tensions between the world's two largest economies is viewed as a major catalyst for the current wave of positive market activity. Such developments often encourage risk-on behavior among investors, as global economic uncertainty diminishes and clarity emerges.

Ethereum, Solana, and Ripple Surge Alongside Bitcoin's Rally

The bullish sentiment surrounding Bitcoin extended across the altcoin market, generating gains for other leading cryptocurrencies. Ethereum (ETH) rose by 3.48%, climbing to $4,063, while Solana (SOL) advanced 2.10% to reach $198.60. Ripple (XRP) also experienced modest growth, increasing by 0.01% to trade at $2.61. XRP’s reclamation of its 200-day moving average at $2.60 suggests a potential technical recovery in the coming days.

Among the most notable performers were Bitcoin Cash (BCH) and HyperLiquid (HYPE). Bitcoin Cash soared by 8.99%, ending the trading session at $553. Meanwhile, HyperLiquid, an emerging cryptocurrency garnering attention for its strong market entry, jumped 9.46%. Its robust upward trajectory reflects increasing interest from investors eager to capitalize on its momentum.

Federal Reserve Rate Cut Outlook Powers Risk Asset Gains

Expectations for a Federal Reserve rate cut have intensified in recent weeks, further contributing to the rally in high-risk asset classes. Markets are largely anticipating a 0.25 percentage point reduction in the federal funds rate to 4.00%, which is expected to be announced during the Federal Open Market Committee (FOMC) meeting scheduled for October 30-31. Speculation about a more accommodating monetary policy has bolstered hopes for an influx of liquidity that could benefit sectors like cryptocurrencies.

Federal Reserve Chair Jerome Powell has hinted that the long-running quantitative tightening cycle may soon come to a close, stoking expectations of a more dovish monetary policy stance moving forward. On October 26, the yield on the U.S. 10-year Treasury note held steady at 4.003%, while the dollar index (DXY) posted marginal gains, reaching 98.577. However, the prospect of a softer dollar due to a rate cut could amplify capital flows into high-risk investments, including digital currencies.

Cautious Market Sentiment Amid Rally Highlights Lingering Concerns

Despite the ongoing rally in cryptocurrencies, investor caution remains prevalent. The Alternative Fear & Greed Index, which assesses overall market sentiment, recorded a score of 36, placing it firmly within the “Fear” zone. While the recent price upticks have brought relief to traders and investors, broader market uncertainties remain an overhanging concern.

Potential risks, including macroeconomic volatility, geopolitical developments, and regulatory pressures, continue to weigh on market participants. Although cryptocurrencies are witnessing a wave of bullish activity, the underlying cautious sentiment suggests that a large portion of investors remains vigilant about possible headwinds that could impact the industry and broader financial markets.

Conclusion: Rising Optimism, Persistent Challenges

The recent rally across Bitcoin and the broader cryptocurrency market highlights the powerful impact of external catalysts such as U.S.-China trade progress and Federal Reserve monetary policy expectations. Bitcoin’s climb past key resistance levels, along with significant gains by prominent altcoins like Ethereum, Solana, Bitcoin Cash, and HyperLiquid, underscores the resilience of cryptocurrencies in the face of uncertainty.

At the same time, caution persists among investors, balanced by fears of broader market instability. While the influences of trade talks and rate cut hopes provide short-term momentum, the ecosystem remains subject to external factors, which could shape its trajectory in the weeks ahead. Nonetheless, the bullish trend demonstrates the market's enduring potential to adapt and thrive, even amid uncertainty.