Global crypto markets soared over the weekend, with Bitcoin and major altcoins rallying on improved economic news and large-scale short selling liquidations.
Bitcoin rose 3.4% on Sunday to a two-week high of $115,400, before stabilizing around $115,226, according to market data. Despite the pullback, Bitcoin remains approximately 8.6% below its all-time high of $126,080, set on October 6, 2025.
Ethereum also joined in the surge, rising 7% to trade around $4,216. XRP, BNB, and Solana followed with modest but notable gains of 2% to 5.5%.
Furthermore, investor sentiment improved following reports indicating progress in US-China trade talks. The world’s two largest economies have reportedly reached an initial agreement outlining a potential trade deal.
Additional negotiations are expected to take place during a meeting between President Donald Trump and Chinese President Xi Jinping in South Korea later this week. Lucas said signs of improving U.S.-China relations are “encouraging for global markets.”
He added that these improvements could reduce pressure on supply chains and increase demand for risk assets, including cryptocurrencies.
Expectations for interest rate cuts will spur a rise
Additionally, the market is gearing up for the FOMC meeting on Tuesday and Wednesday. Traders widely expect another rate cut, which could further support speculative assets.
CME Group’s FedWatch tool shows a 96.7% chance of a 25 basis point (bp) rate cut. If that happens, the Fed’s target range would be 3.75%-4.00%. Lower borrowing costs generally improve liquidity, which often benefits high-risk investments such as digital assets.
Large-scale short-term liquidation expands bull market
The bull market gained momentum over the weekend as traders who had bet on the market were forced to close their positions.
According to CoinGlass data, traders holding short positions worth approximately $373.07 million faced liquidation within 24 hours. Of this total, a significant amount of $231.23 million was generated within just 12 hours.
Lucas described the move as a “classic short squeeze,” in which a small price increase triggered rapid buybacks by short sellers, accelerating the rally.
Analysts focus on the possibility of a “Santa Claus rally”
Looking ahead, analysts expect the bullish trend to continue as the year-end approaches. Historically, cryptocurrency markets often experience a year-end rally, commonly known as the “Santa Claus Rally.”
Nick Luck, research director at LVRG Research, said the market could continue to strengthen through the end of the year, supported by post-halving optimism and seasonal liquidity flows.
BTC Markets’ Lucas predicted that Bitcoin could rise 15% to 25% from current levels, reaching $130,000 to $150,000 by the end of 2025.
Vincent Liu, chief investment officer at Cronos Research, added that portfolio rebalancing, strong macro signals and expected rate cuts could further fuel the upward momentum. However, he cautioned that volatility is likely to continue as markets adjust to changes in economic data.
