Cryptocurrency markets rallied on October 27, 2025, for a fifth consecutive session, with Bitcoin climbing above $115,000 and Ethereum surpassing $4,200. The surge was driven by expectations of a Federal Reserve interest rate cut on October 29 and a new US-China trade framework announced on October 26. Total market capitalization reached $3.92 trillion amid reduced volatility and short liquidations.
On Monday, October 27, 2025, Bitcoin traded as high as $115,956, marking a 4.4% gain from $111,032 at the start of the five-day rally, while Ethereum rose 7.7% to $4,253 from $3,950. This performance extended a winning streak fueled by macroeconomic developments, including a 98.3% probability of a 25-basis-point Federal Reserve rate cut at its October 29 meeting, as indicated by the CME FedWatch Tool. The rally accelerated over the weekend following the announcement of a US-China trade framework agreement reached during negotiations in Malaysia on October 26, which US Treasury Secretary Scott Bessent described as a "very substantial framework" that could prevent 100% US tariffs and pause China's rare-earth export restrictions.
Bitcoin's 30-day implied volatility dropped to 44%, signaling reduced market anxiety after an October 10 spike, while options data on Deribit showed a neutral-to-bearish bias in longer-term contracts for both Bitcoin and Ethereum. Short liquidations totaled $319 million over 24 hours, squeezing bearish positions and boosting trading volume by 318% above average during the initial surge past $112,000. Open interest in futures increased for most cryptocurrencies, excluding XRP, HYPE, and HBAR, indicating capital inflows.
Altcoins showed mixed results: older tokens like Zcash (ZEC) at $342.17, Bitcoin Cash (BCH) at $556.39, and Dash (DASH) at $51.48 posted double-digit or near-double-digit gains of 8% to 9.5%, while newer tokens Plasma (XPL) fell to $0.37 from a high of $1.67 and Aster (ASTER) declined 43% to $1.07 amid waning demand. Bitcoin dominance rose to 59.1%, up from 57.1% six weeks prior, highlighting investor preference for Bitcoin over speculative altcoins.
LMAX strategist Joel Kruger noted, "The recent rebound in crypto has been supported by an improving macro backdrop—particularly softer U.S. CPI data that has reinforced expectations for Federal Reserve rate cuts." He added that the pullback appeared as "healthy consolidation," with markets "well supported on dips, paving the way for another leg higher into year-end." Technically, Bitcoin broke its 50-day exponential moving average at $114,176, targeting a retest of $120,000, while Ethereum surpassed its 50-day EMA and August lows at $4,070, eyeing $4,800 highs.