"Investor confidence is being reinforced by two major factors: (1) expectations that a potential U.S.-China trade agreement could ease pressure on global supply chains and trade flows, and (2) hopes that the Federal Reserve will pause its tightening cycle at the November meeting. As the U.S. dollar weakens and real yields begin to flatten, capital naturally gravitates toward higher-return assets - and Bitcoin is once again emerging as the first stop in the risk-asset spectrum."
"On-chain data also supports this narrative. Long-term holders show no signs of large-scale distribution, while spot Bitcoin ETFs in the U.S. continue to record steady inflows. This suggests that the current buying momentum is not driven by short-term FOMO, but by institutional and strategic investors reallocating portfolios in anticipation of a new interest-rate environment. Unlike previous upswings, this recovery is unfolding while gold weakens."
Bitcoin has recovered from lows near $103,000-$104,000 to trade around $114,000 amid expanding global risk-on sentiment. The rally signals a shift from speculative trading to legitimate capital allocation by institutional investors. Confidence is driven by hopes for a U.S.-China trade agreement easing supply-chain pressures and expectations that the Federal Reserve will pause tightening. A weaker U.S. dollar and flattening real yields are sending capital toward higher-return assets, positioning Bitcoin as an early beneficiary. On-chain metrics show long-term holders retaining positions while U.S. spot Bitcoin ETFs record steady inflows. The recovery coincides with weakening gold, indicating a structural shift of safe-haven flows toward digital assets.
Read at London Business News | Londonlovesbusiness.com
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