The week kicked off with a sigh of relief across global markets as optimism returned to the table. After weeks of tension, the United States and China have reportedly made “substantial progress” toward a new trade framework. According to U.S. Treasury Secretary Scott Bessent, this could render the 100% tariffs announced by President Trump unnecessary — a signal that markets immediately welcomed.
Bitcoin jumped above $115,000, while Ethereum gained more than 3% in early Monday trading. The sudden surge triggered over $300 million in short liquidations, a clear indication that many traders had bet against the move — and got caught on the wrong side of it.
🏦 Macro Tailwinds: The Liquidity Pivot in Sight
Beyond the geopolitical news, the macroeconomic backdrop is also turning more supportive. Analysts from The Kobeissi Letter warn that liquidity in the U.S. banking system is approaching a critical threshold — one that historically forces the Federal Reserve to act.
Market strategist Adam Livingston pointed out the potential for a “major liquidity pivot” in the coming months. If the Fed decides to ease its balance sheet policy or increase system liquidity, risk assets such as Bitcoin and equities could see renewed inflows of capital.
This perspective aligns with recent on-chain data:
Whale wallets (large BTC holders) have been accumulating steadily since mid-October.
Smaller investors, by contrast, are taking some profits after Bitcoin’s record-breaking rally earlier this year.
🧭 What This Means for Crypto
The combination of easing trade tensions and a possible liquidity pivot paints a bullish macro picture for the crypto market:
Reduced geopolitical pressure means fewer shocks to global sentiment.
More liquidity from central banks can fuel renewed investment into risk assets.
Institutional accumulation suggests growing confidence that the current cycle still has room to run.
While short-term volatility is inevitable — especially at these price levels — the underlying setup remains strong. If the Fed indeed shifts its stance, the next wave of capital could once again flow toward Bitcoin and digital assets.
💬 Do you think the US–China talks mark the beginning of a broader market recovery — or just a temporary relief rally? Share your thoughts below!