Bitcoin News Today: Bitcoin Surges as US-China Trade Truce Cuts Geopolitical Risk

Bitcoin (BTC) rallied to $113,500 on October 26 as the U.S. and China announced a preliminary trade framework to avert 100% tariffs, sparking optimism in global markets, according to a Beincrypto report. The breakthrough, reached during two days of negotiations in Kuala Lumpur, the Beincrypto report notes, follows months of escalating tensions, including Beijing's rare earth export controls and Trump's tariff threats, according to a Times of India report. The deal — which includes tariff suspensions and a pause on China's rare earth curbs, per a TheStreet article — lifted the total crypto market cap to $3.92 trillion, with Bitcoin dominance near 57.7%, the article added.

U.S. Treasury Secretary Scott Bessent described the agreement as a "very substantial framework" to stabilize trade relations, TheStreet coverage reported, while Chinese Vice Premier He Lifeng emphasized "mutual benefit and win-win results" in the same reporting. The talks, held alongside Trump's ASEAN visit and highlighted by the Beincrypto report, precede a planned meeting between Trump and Chinese President Xi Jinping in South Korea to finalize terms, according to a TRT World report.

The crypto rebound followed a sharp sell-off triggered by Trump's October 10 tariff announcement, which erased $200 billion from the crypto market in hours, the Beincrypto report said. Bitcoin's recovery to $113,500 marked a 1.8% gain, with Ethereum (ETH) surpassing $4,040 and Solana (SOL) rising 2.49% to $198, according to the same reporting. Analysts attributed the rally to reduced geopolitical risk and expectations of improved liquidity, in line with a Coindoo analysis.

Trade tensions had intensified after the U.S. announced a Section 301 probe into China's compliance with the 2020 trade deal, as detailed in an Economic Times report, prompting Beijing to impose rare earth export restrictions noted by the Times of India. Trump's 100% tariff threat, set to take effect November 1, had fueled fears of a trade war, according to InvestingLive, but the latest framework signals a potential de-escalation, as the Beincrypto report observed.

The outcome could shape Bitcoin's trajectory in the final quarter of 2025. While Galaxy Digital's Mike Novogratz cautioned that "planets would need to align" for BTC to reach $250,000 in a Bitzo piece, the easing of trade tensions has historically bolstered risk-on sentiment, benefiting cryptocurrencies, Coindoo's analysis suggests. However, analysts warn that a breakdown in talks could trigger renewed volatility, with Bitcoin potentially facing downward pressure as investors seek safe-haven assets, according to the same Coindoo coverage.

With the Trump-Xi summit approaching, markets remain on edge. A finalized deal could catalyze broader economic optimism, while a collapse might reignite fears of inflation and geopolitical instability — scenarios that have historically reinforced Bitcoin's store-of-value narrative, as discussed in the Coindoo analysis.