U.S. and China Strike Trade Equilibrium, Cooling Tensions and Lifting Crypto Sentiment

In the rollercoaster turn of events, Treasury Secretary Scott Bessent announced on Sunday that the U.S and China have avoided a catastrophic 100% tariff after both parties have made substantial progress towards their negotiations.

This news has also raised hopes among the crypto community for a renewed bull market. Besset expressed that President Trump's threat of a 100% tariff last week has given him significant negotiating leverage which has been crucial to his success.

This announcement follows a period of easing tensions, culminating in President Trump confirming his upcoming meeting with China’s President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit on October 31. Previously, Trump had expressed skepticism about meeting Chinese officials, sparking fears of prolonged trade conflict.

Crypto investors and traders welcomed the news of the trade framework, driving a modest rally in cryptocurrency markets. Following Bessent’s statement, Bitcoin saw a 1.8% increase to around $115,200, Ethereum gained 3.6% to about $4,175, and Solana rose 3.7% to over $200.

Market analyst Jeff Park of Bitwise suggested the positive developments could push Bitcoin and gold to new all-time highs. Investor Anthony Pompliano echoed this optimism, forecasting a surge in asset prices if the trade deal is finalized and the Federal Reserve cuts interest rates, urging market participants to “buckle up.”