Leading cryptocurrencies advanced on Monday as trade talks between U.S. and Chinese officials fanned investor optimism.

What Happened: Bitcoin price shot up above the $110,000 level after a two-week gap, while trading volumes soared 55% to $58.45 billion.

The second-largest cryptocurrency, Ethereum, recorded a steeper rise, surging more than 8% to pass the $2,700 mark. The volume of ETH traded in the last 24 hours almost doubled to $22.32 billion.

As of press time, Bitcoin had a 63.6% market share, while Ethereum's dominance increased to 9.5%.

Over $182 million was liquidated from the cryptocurrency market in the last 4 hours and nearly $438 million in the 24-hour period. About $380 million in short positions were erased from the market.

Derivatives traders were bullish on the rally. Bitcoin's Open Interest popped 7.04% in the last 24 hours, while Ethereum's Open Interest jumped over 12% in the last 24 hours.

The "Greed" sentiment surged from 62 to 71 in the last 24 hours, according to the Crypto Fear & Greed Index, indicating strong buying pressure.

Top Gainers (24-Hours)

The global cryptocurrency market cap surged 4.10% to $3.44 trillion in the last 24 hours.

Major stock indexes edged higher Monday. The S&P 500 eked out a modest gain of 0.09% to close at 6,005.88. The tech-heavy Nasdaq Composite rose 0.31% to finish at 19,591.24. The Dow Jones Industrial Average was mostly flat, losing 1.11 points to close at 42,761.76.

The movement comes as the U.S. and China resumed trade talks in London, which will likely also focus on rare earth minerals. The talks aim to address the mounting tensions that have arisen since the 90-day tariff truce was agreed upon in Geneva in May.

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Analyst Notes: On-chain analytics firm Santiment noted a sharp surge in FOMO among retail traders as Bitcoin rallied.

"Now, they are showing signs of flooding back in with the 2nd largest spike in FOMO in the last 2 weeks. Historically, markets will move in the opposite direction of the retail crowd’s expectations," Santiment warned.

Widely followed cryptocurrency analyst Michaël van de Poppe identified $2,700-$2,750 as a "strong" resistance area, and if ETH manages to break through, the next “big surge” may be imminent.

"It’s pretty normal to have a correction/consolidation after a 50% upwards move on the price, the longer this consolidation takes, the heavier the breakout upwards will be," the analyst added.