In a significant market development, Bitcoin surged above $113,000 late on Sunday during Asian trading hours, marking its highest value in almost two weeks. According to reports from Yahoo Finance, this upward movement comes in the wake of positive negotiations between U.S. and Chinese officials, who announced a “preliminary consensus” on several contentious issues, including crucial topics such as export controls, fentanyl, and shipping levies.
US Treasury Secretary Scott Bessent remarked during an interview with CBS that the threat of 100% tariffs on Chinese goods, as previously indicated by President Donald Trump, is “effectively off the table.” These statements came after two days of negotiations in Malaysia and set the stage for an anticipated meeting between Trump and Chinese President Xi Jinping aimed at finalizing a broader trade agreement.
This diplomatic progress has positively influenced risk sentiment in global markets, contributing to gains in US and Asian equity futures. The crypto market, in particular, reacted favorably, with other digital currencies also experiencing notable increases. Ethereum, for example, rose by 2.6% to approximately $4,060, while both BNB and Solana recorded gains of around 4.5%. XRP saw a jump of 2.3% to $2.64, benefiting from earlier optimism surrounding exchange-traded funds (ETFs). Conversely, Tron’s TRX was the only major cryptocurrency to decline, falling by 2.9%.
Overall, the broader cryptocurrency market capitalization increased by 1.8% to reach $3.72 trillion, recovering some losses that had resulted from a liquidation cascade earlier in the month. Analysts believe that the easing of trade tensions has provided traders with much-needed relief, especially after a period marked by macroeconomic uncertainty.
With the Federal Reserve’s upcoming policy meeting approaching, market participants are keenly focused on how the central bank’s communications will affect ongoing trends. For now, the recent geopolitical developments have prevented Bitcoin from concluding October on a negative note, potentially avoiding its worst monthly performance since 2015.
