Bitcoin News Today: Fragile US-China Trade Détente Sparks Bitcoin and Stock Surge

Bitcoin and global equities surged this week as renewed hopes for a U.S.-China trade deal lifted market sentiment, with analysts citing a fragile but significant shift in geopolitical risk dynamics. The cryptocurrency market, which had reeled from volatility triggered by earlier tariff threats, saw Bitcoin (BTC) climb above $113,000, while U.S. stock futures and equity funds posted strong inflows. The rally coincided with preliminary trade framework agreements reached during weekend negotiations in Malaysia, ahead of a key meeting between President Donald Trump and Chinese President Xi Jinping on October 30, according to Yahoo Finance.

The U.S. Treasury Department confirmed that negotiators had secured a "very substantial framework" to avert threatened 100% tariffs on Chinese goods and defer Beijing's rare-earth export curbs. Treasury Secretary Scott Bessent emphasized that the deal would "safeguard" progress from earlier trade talks and allow for further discussions on agricultural purchases and fentanyl-related enforcement, TheStreet reported. Chinese Vice Premier He Lifeng echoed the sentiment, calling the agreement a "win-win" for both sides, according to TheStreet.

Cryptocurrencies responded swiftly to the news. Bitcoin's price rebounded from a post-tariff-announcement low near $100,000 to over $113,000, with the total crypto market cap rising to $3.92 trillion. Ethereum (ETH) and altcoins like Solana (SOL) and XRP also posted gains, reflecting broader risk-on sentiment. Analysts attributed the rally to reduced fears of global supply chain disruptions, a key concern for crypto markets, according to a Bitget report.

Equity markets mirrored the optimism. Global equity funds attracted a net $11.03 billion in inflows during the week ending October 22-the largest three-week surge since early October-as investors bet on easing trade tensions. U.S. equity funds saw a net $9.65 billion influx, reversing two weeks of outflows, while Asian funds added $2.81 billion. Technology sector funds, which had been pressured by trade-related uncertainty, drew $2.92 billion in inflows, according to Yahoo Finance.

The trade détente also sparked renewed speculation about Bitcoin's trajectory. Some strategists, including Wedbush's Dan Ives, called the framework "a huge groundbreaking moment" for tech stocks and the AI sector, which has faced headwinds from export controls and rare-earth restrictions. "This removes a lingering overhang on the market," Ives said, noting that a comprehensive trade deal could catalyze a broader economic recovery, as reported by Barron's.

However, experts caution that the agreement remains fragile. The Trump-Xi meeting in South Korea is seen as a pivotal test, with both leaders under domestic pressure to deliver tangible results. A collapse in negotiations could reignite volatility, as seen when Trump's October 10 tariff announcement triggered a $200 billion crypto market plunge, according to Yahoo Finance.

Bitcoin's technical outlook remains mixed. While the price has stabilized above key Fibonacci levels and on-chain inflows suggest renewed accumulation, analysts warn that a drop below $100,000 could trigger renewed panic. "The market is still in a tight trading range, and sentiment could shift rapidly if trade tensions resurface," one strategist noted, according to CryptoRank.

As the Federal Reserve prepares for its next policy meeting, investors are weighing whether dovish monetary policy and sustained trade progress could drive Bitcoin toward new highs. For now, the market appears to be betting on a continuation of the fragile détente, with both digital and traditional assets showing early signs of relief.