Bitcoin surged above the $113,000 mark during late Asian trading hours on Sunday, marking its highest value in nearly two weeks. This upswing comes in response to favorable developments in US–China trade negotiations, which have alleviated concerns about potential tariff escalations. Top trade negotiators from both countries reported reaching a “preliminary consensus” on several critical issues, including export controls, fentanyl, and shipping tariffs. US Treasury Secretary Scott Bessent further reassured markets by stating that President Donald Trump’s threat of implementing 100% tariffs on Chinese goods is “effectively off the table.”
These positive comments were made following two days of discussions in Malaysia and in anticipation of an upcoming meeting between Presidents Trump and Xi, aimed at finalizing a broader trade agreement. This change in sentiment has had a ripple effect across global markets, leading to advancements in US and Asian equity futures. Additionally, the price of gold experienced a slight decline from its recent highs as traders shifted their focus back to risk assets.
The cryptocurrency market mirrored this trend, with several digital currencies also making gains. Ether rose by 2.6%, trading near $4,060, while Binance Coin (BNB) and Solana saw increases of approximately 4.5% each. XRP experienced a 2.3% increase, continuing last week’s upward momentum driven by optimism surrounding exchange-traded funds (ETFs). However, Tron’s TRX was the only major token to see a decline, dropping by 2.9%.
Overall, the broader cryptocurrency market capitalization increased by 1.8%, reaching $3.72 trillion, as reported by CoinGecko. This recovery somewhat countered earlier market turbulence that had occurred following a recent liquidation cascade.
Analysts note that the easing of trade tensions has provided traders with much-needed breathing room after a period of macro-driven volatility. Looking ahead, attention is turning to the Federal Reserve’s forthcoming policy meeting, with many market participants awaiting guidance on the central bank’s tone. Until then, the current relief stemming from geopolitical developments is allowing the cryptocurrency market to recover, preventing Bitcoin’s October performance from sinking to its weakest level since 2015.
