Bitcoin bounced back to the $110,000 mark early Friday, regaining ground lost earlier in the week as easing tensions between the United States and China helped restore investor confidence across global markets. The recovery came even as outflows from U.S. spot crypto exchange-traded funds (ETFs) continued and the Federal Reserve maintained a hawkish tone.
According to data, Bitcoin traded between $109,600 and $110,200 after dipping near $107,000 on Thursday. The rebound followed comments from Federal Reserve Chair Jerome Powell, who said a December rate cut “is not a foregone conclusion,” signaling that policymakers remain cautious about easing too soon.
Kyle Rodda, senior financial market analyst at Capital.com, said traders have shifted focus from the Fed’s interest-rate stance to improving diplomatic developments.
“The market’s attention has turned toward the U.S.–China accord, which appears to have provided some much-needed stability,” he noted.
Diplomacy Steps In as Data Delays Persist
In a move that buoyed sentiment, U.S. President Donald Trump and Chinese President Xi Jinping announced a series of tariff reductions and cooperative measures following their meeting in South Korea. The agreements, which cover trade, energy, and fentanyl enforcement, have been seen as a positive step toward easing global trade tensions.
Timothy Misir, head of research at BRN, said the deal offered “a confidence boost at a time when macro visibility is limited.” A partial U.S. government shutdown has delayed key economic data, including the GDP report, leaving investors to rely more on diplomatic signals than hard numbers.
This uncertainty has weighed on crypto ETF flows. On Thursday, U.S. spot bitcoin ETFs saw approximately $488 million in net outflows, with none reporting net inflows. Spot ether ETFs also posted around $184 million in outflows, while Solana ETFs bucked the trend with $37.3 million in inflows, led by Bitwise’s BSOL fund.
A Weak October, but Long-Term Optimism
October, historically a bullish month for Bitcoin, is on track to be one of the weakest in over a decade. CoinGlass data shows that an early-month rally to all-time highs was followed by more than $10 billion in liquidations, erasing gains and dampening sentiment.
Still, analysts remain upbeat about Bitcoin’s long-term prospects. Paul Howard, senior director at Wincent, expects BTC to remain “in the $110,000–$120,000 range following the next Fed rate cut,” adding that the recent pullback offers an opportunity for accumulation.
“My sense is we’ll see macro improvements heading into November, which could lift risk assets like Bitcoin before some end-of-year consolidation,” Howard said.
Crypto Market Snapshot
As of early Friday:
- Bitcoin (BTC): around $110,000
- Ether (ETH): near $3,900
- BNB: around $1,100
- Solana (SOL): trading just below $190
The overall crypto market capitalization held steady at roughly $3.76 trillion.
