Bitcoin Stabilizes Above $105,000, Eyes $109,400 Amid Easing Trade Tensions
Over the weekend, Bitcoin stabilized above the $105,000 level, sparking a push toward $109,400. Experts suggest that the flagship cryptocurrency may be forming a local bottom as U.S.-China trade tensions soften, though caution remains in the market.
The end of quantitative tightening (QT) and the prospect of interest rate cuts set a bullish tone for Bitcoin heading into 2026. As key macroeconomic pressures begin to ease, Bitcoin is showing promising signs of stabilization.
According to CoinGecko data, Bitcoin gained nearly 2% over 24 hours, reaching a high of $109,405. This upward movement has also fueled a minor rally across the broader altcoin market.
Peter Chung, head of research at Presto Research, expressed optimism about Bitcoin’s outlook:
“I think Bitcoin is bottoming here. I expect the next move is more likely to be upward rather than downward.”
This potential bullish reversal follows the Federal Reserve’s dovish shift last week, when Chair Jerome Powell indicated that quantitative tightening may soon end and that interest-rate cuts are possible. With QT winding down, risk assets like Bitcoin could benefit from looser financial conditions as liquidity withdrawal slows.
Meanwhile, a softening in the U.S.-China trade war is also anticipated this week. Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng are scheduled to meet in Malaysia to ease tensions that had previously triggered a historic liquidation cascade earlier this month.
Sean Dawson, head of research at Dervie, shared a similar outlook but urged caution:
“This is probably a local bottom. Lower rates push investors up the risk curve into assets like crypto. However, the risk of escalation in the U.S.-China trade war could cause a further tumble.”
Looking ahead, Friday’s upcoming U.S. inflation report will be closely watched, as it could influence Bitcoin’s immediate trajectory. However, industry experts note that the outcome of U.S.-China trade negotiations may have an even greater impact on market sentiment.
“Bitcoin is extremely sensitive to these talks,” Dawson explained, noting that the largest price moves this year have followed key tariff announcements. “Should there be a positive resolution to these fears, we’d likely see a significant upward rally.”
Further optimism stems from the Fed’s plan to end QT, which involves reducing the central bank’s balance sheet. Dawson remarked that this move “will be bullish for Bitcoin,” as returning liquidity fosters a more favorable environment for speculative assets.
Additionally, bond traders expect a quarter-point rate cut at the Fed’s next meeting on October 29. While a larger-than-expected rate cut would be positive for Bitcoin’s price in the short term, Dawson noted that its full effects “would persist and manifest itself on longer time horizons likely by the first quarter of next year.”
In summary, with easing trade tensions, a dovish Fed stance, and improving liquidity, Bitcoin appears poised for potential upside. Still, market participants remain watchful of geopolitical risks and economic data that could influence the next chapter for the crypto market.
https://decrypt.co/344927/has-bitcoin-bottomed-heres-what-the-experts-say
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