Bitcoin News Today: U.S.-China Trade Talks: Will Malaysia Summit Calm Global Market Jitters?

The U.S. and China are set to resume high-level trade negotiations in Malaysia this weekend, signaling a renewed push to de-escalate tensions that have spilled into global markets and cryptocurrencies like Bitcoin. U.S. Treasury Secretary Scott Bessent will meet with Chinese Vice Premier He Lifeng, aiming to address disputes over tariffs, rare earth exports, and trade imbalances ahead of a potential in-person summit between President Donald Trump and Chinese President Xi Jinping later this month, according to a Turkiye Today report. The talks, the fifth round of in-person negotiations since 2025, follow a temporary truce that paused new tariffs until November 10, Turkiye Today reported.

The urgency of these discussions stems from a history of unmet commitments under the 2020 U.S.-China trade deal. At the time, Beijing pledged to purchase an additional $200 billion in American goods and services, but a New York Times analysis revealed China met only 58% of its targets, hindered by the pandemic and unrealistic expectations. Critics argue the deal's benchmarks were never feasible, and the Biden administration has faced blame for failing to enforce compliance. With Trump's return to the White House, tariffs on Chinese imports have surged to as high as 145%, while Beijing retaliated with 125% duties, exacerbating a trade war that now threatens global supply chains, Turkiye Today noted.

Recent escalations include China's restrictions on rare earth exports—critical for electronics and defense—and the U.S. threatening 100% tariffs on Chinese goods. These measures have triggered a "risk-off" environment in financial markets, with Bitcoin dropping to $108,000 amid fears of prolonged trade hostilities, according to an OpenPR live update. Cryptocurrency analysts note that geopolitical tensions often amplify Bitcoin's volatility, as investors flee to safe-haven assets or liquidate leveraged positions. The crypto market's sharp reversal on October 24, coinciding with news of the Malaysia talks, underscores its sensitivity to macroeconomic shifts, OpenPR reported.

Trump has framed the trade agenda around demands for China to address rare earths, fentanyl, and soybean exports, while also seeking partnerships with allies like Australia to secure critical minerals, according to a Yahoo Finance report. A potential deal could stabilize markets and ease pressure on Bitcoin, which has historically rallied in periods of regulatory clarity. However, the path forward remains uncertain, with Trump recently questioning whether the Xi summit will occur in what one Yahoo Finance update described as a tenuous diplomatic calendar.

For now, traders are watching for signals of de-escalation. A successful trade agreement could reduce tariffs, stabilize supply chains, and restore investor confidence, potentially boosting Bitcoin's appeal as a hedge against inflation and geopolitical risk. Conversely, a breakdown in talks risks further market turbulence, with cryptocurrencies likely to bear the brunt of short-term volatility, OpenPR warned.