Bitcoin News Today: Bitcoin Surges as U.S.-China Trade Optimism Quells Macroeconomic Uncertainty

Bitcoin surged past $113,000 on Sunday, marking its first climb above that level since October 23, as U.S. Treasury Secretary Bessent signaled progress in trade negotiations with China. The move comes after Bessent announced that Beijing is "ready" to finalize a deal to remove President Donald Trump's 100% tariff on Chinese imports, which had been scheduled to take effect on November 1, according to a CryptoPotato report. The development has ignited optimism in financial markets, with analysts linking the Bitcoin rally to reduced macroeconomic uncertainty and renewed trade diplomacy between the world's two largest economies.

The tariff, announced by Trump on October 10, had sent shockwaves through global markets, with the president accusing China of "deceitful" economic practices. However, recent diplomatic engagements-including meetings between U.S. and Chinese trade delegations and a planned summit between Trump and Chinese President Xi Jinping in Europe-have paved the way for a resolution. Bessent's remarks, shared via The Kobeissi Letter, suggest that the agreement will not only avert the impending tariff but also stabilize trade relations ahead of a potential Trump re-election bid in 2026, as reported by CryptoPotato.

The Bitcoin surge aligns with historical patterns observed in the cryptocurrency market, where trade tensions and geopolitical developments often drive volatility. Bybit's latest volatility report, co-authored with Block Scholes, noted that Bitcoin's implied volatility spiked in mid-October following a $19 billion liquidation cascade-the largest in crypto history-triggered by renewed U.S.-China trade hostilities. The report highlighted a term structure inversion in BTC volatility, a rare event last seen in April 2025, as traders scrambled for downside protection amid uncertainty.

While the Bybit analysis attributed the volatility resurgence to macroeconomic stress, the latest trade developments could signal a turning point. The report noted that Bitcoin's implied volatility had fallen to as low as 25% on September 19, 2025, before the October spike, suggesting that markets may stabilize further if the U.S.-China deal is confirmed.

The path to a resolution, however, remains complex. Trump's tariff rhetoric has historically been unpredictable, and the president has previously escalated disputes with allies like Canada over similar issues. Last week, he announced a 10% tariff increase on Canadian goods after an Ontario ad campaign used Reagan-era rhetoric to criticize U.S. tariffs-a move that underscores the fragility of trade negotiations.

For now, Bitcoin's rally reflects traders' hopes that the U.S.-China deal will curb protectionist policies and restore market confidence. As Bessent emphasized, the agreement could serve as the "10th and final step" in Trump's tariff strategy, potentially unlocking broader economic growth and financial market stability, according to CryptoPotato.

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