Bitcoin returns above $110,500 on rate cut hopes; US-China risk still major: analysts

Bitcoin climbed back above $110,000 to $110,544, leading broader crypto market gains as traders regained confidence in macroeconomic conditions, including renewed demand for spot crypto ETFs. This rebound follows a recent falter caused by factors like U.S. tariffs on China and regional bank concerns. Analysts suggest traders are now pricing in a potential interest rate cut in October, eased by Federal Reserve Chair Jerome Powell's comments on labor market softness, which improved liquidity for risk assets. Key technical levels to watch are $107,000 for support and $111,000 for upward momentum. However, significant near-term risks remain, particularly geopolitical tensions between the U.S. and China, which carry "significant headline risk" ahead of an upcoming meeting.

(Source：The Block)