Bitcoin News: Bitcoin Finds Its Footing as US-China Tariff Truce Cools Market Panic

Key Takeaways:Bitcoin rebounds above $114,800 as US-China tariff truce hopes calm markets.Investor sentiment flips from fear to neutral after reports of a “preliminary” deal.Traders eye FOMC rate cut and Trump–Xi meeting as next major catalysts.Bitcoin Rebounds as Trade Tensions EaseBitcoin (BTC) reclaimed ground on Monday, rising to $116,400 — a two-week high — as optimism around a potential US-China trade deal and a likely Federal Reserve rate cut improved global risk sentiment.The recovery followed a brutal sell-off earlier this month, when Trump’s 100% tariff threat triggered a $19 billion crypto liquidation and sent Bitcoin tumbling to $104,000.According to Alternative.me, the Crypto Fear & Greed Index climbed back to neutral on Monday for the first time since the market crash, signaling a shift in investor confidence.“Recent Optimism Ignited a Weekend Rally”“Recent optimism surrounding the US-China trade negotiations helped ignite a weekend rally in Bitcoin,” said Wenny Cai, co-founder and COO of SynFutures.“Signs of progress have lifted broader risk sentiment.”The rebound also pushed BTC above the short-term holder (STH) cost basis of around $114,000, a key support level often linked to short-term profit-taking. Sustaining momentum above this line, analysts say, could signal market stabilization after weeks of volatility.Trump Expects Deal With Xi as FOMC LoomsSpeaking aboard Air Force One on Monday, U.S. President Donald Trump said he was confident the two nations would “come away with the deal” following Thursday’s meeting with Chinese President Xi Jinping, according to CNBC.The comments helped lift both stocks and crypto markets, with traders betting that a tariff truce could prevent another round of market turmoil.Meanwhile, macro traders are positioning for Wednesday’s FOMC meeting, where the Federal Reserve is widely expected to deliver a 25-basis-point rate cut.The CME FedWatch Tool shows a 96.7% probability of a cut, further boosting appetite for risk assets, including Bitcoin.