The cryptocurrency market extended its rally over the weekend, with Bitcoin and most major altcoins climbing to their highest levels in more than a week. Bitcoin traded at $112,866, up 5.3% from $107,088 a week earlier, while total crypto market capitalization surged 14% to $3.73 trillion, according to CoinGecko data.
Altcoins lead the weekend rally
Altcoins joined Bitcoin’s advance, with several outperforming the broader market. Zcash (ZEC) surged 26.5%, while Hyperliquid (HYPE) rose 12.7%, Aerodrome Finance (AERO) gained 1.7%, and Virtuals Protocol (VIRTUAL) remained relatively steady. The rebound pushed many tokens to multi-week highs, signaling renewed optimism among traders and investors.
Inflation data boosts market sentiment
The latest rally gained traction after the U.S. Bureau of Labor Statistics (BLS) released an encouraging inflation report on Friday. Headline Consumer Price Index (CPI) inflation rose modestly from 2.9% in August to 3.0% in September, while core inflation—which excludes food and energy—fell from 3.1% to 3.0%.
The cooler inflation data strengthened expectations that the Federal Reserve could cut interest rates at its upcoming meeting. Analysts at ING Bank projected an additional rate cut in December, alongside a potential end to the Fed’s quantitative tightening (QT) program.
The growing optimism over a more accommodative monetary policy also lifted equity markets, with the Dow Jones, S&P 500, and Nasdaq 100 all hitting record highs—further bolstering risk appetite across digital assets.
Optimism grows ahead of Trump–Xi meeting
Geopolitical developments have also contributed to the market’s positive tone. President Donald Trump has embarked on a three-nation tour of Asia, where he is expected to meet Chinese President Xi Jinping during the APEC Summit in South Korea.
Investors are hopeful that renewed diplomatic dialogue could ease ongoing trade tensions between the U.S. and China. Earlier this month, markets slumped after Trump threatened a 132% tariff on Chinese imports—a move that rattled both equities and crypto. The potential for trade de-escalation has now added to the broader risk-on sentiment.
Analysts warn of a possible dead-cat bounce
Despite the renewed optimism, analysts caution that the current rally may represent a dead-cat bounce—a temporary rebound before a continuation of the broader downtrend. Bitcoin is now testing resistance near its 100-day moving average, a key technical barrier that could determine whether the uptrend can sustain.
Looking ahead, the crypto market’s next major catalysts include the Federal Reserve’s policy decision, the Trump–Xi summit, and upcoming U.S. big-tech earnings, with Apple, Microsoft, and Meta Platforms set to report results this week. The combination of macroeconomic signals and geopolitical developments will likely dictate the short-term trajectory of the digital asset market.
