What happened?
The crypto market bounced back as Bitcoin climbed above $110,000, gaining roughly 2.8%, and Ethereum reclaimed the $4,000 mark. Layer-2 tokens led the move, with Mantle (MNT) up about 8.9% and Merlin Chain (MERL) rising roughly 7.5%. Asian equities opened higher and US futures saw modest gains, driven by improving sentiment around global trade.
Who does this affect?
This matters to crypto investors and traders who may see renewed buying opportunities across Bitcoin, Ethereum, and altcoins. Holders and developers of Layer-2 projects could benefit from increased attention and capital flows into scaling solutions. Broader market participants and global investors are also affected since shifts in US-China trade sentiment can move both equities and risk assets like crypto.
Why does this matter?
Easing trade tensions—highlighted by President Trump signaling a softer tariff stance and a planned meeting with China’s Xi—reduces macro risk and tends to lift risk-on assets, which can fuel further crypto gains. If sentiment stays positive, capital may rotate into altcoins and layer-2 tokens, increasing liquidity but also short-term volatility. That spillover into futures and equity markets means crypto rallies could have wider market implications, influencing portfolio allocations and short-term price action.