Bitcoin News Today: US-China Trade Deal Averts 100% Tariffs, Spurring Crypto Market Surge

US Treasury Secretary Scott Bessent announced on October 26 that the United States and China have reached a "substantial" trade framework, averting the 100% tariffs previously threatened by President Donald Trump and sparking a rally in cryptocurrency markets. The deal, negotiated during two days of talks in Malaysia, aims to stabilize global supply chains and reduce economic uncertainty, with Bitcoin rising 1.8% to $113,500 and Ether surging 3.6% as investors welcomed the news, a Coinotag report.

The framework, which emerged after weeks of escalating tensions, removes the immediate risk of tariffs that had triggered a $200 billion crypto market collapse just days earlier. Bessent credited Trump's October 10 ultimatum—threatening to impose steep tariffs on November 1—as critical leverage in securing the agreement. "President Trump gave me a great deal of negotiating leverage with the threat of 100% tariffs, and I believe we have reached a very substantial framework that will avoid that," Bessent told CBS, Cointelegraph reported. The deal also includes commitments from China to delay rare earth export controls and address fentanyl precursor chemicals, while the U.S. secured agricultural purchases for farmers, Politico reported.

Crypto markets reacted swiftly to the development, with the total market cap climbing to $3.88 trillion. Bitcoin's rebound followed a brutal 10% drop after Trump's initial tariff announcement, which triggered forced liquidations and accusations of manipulation against exchanges like Binance, BeInCrypto reported. Analysts noted the correlation between trade policy and crypto volatility, citing historical precedents where de-escalation led to surges in digital assets. "Asset prices will get crazy this week if the US-China trade deal is announced and the Fed cuts interest rates. Buckle up," said Anthony Pompliano, a prominent crypto analyst, as reported by Cointelegraph.

The negotiations mark a dramatic turnaround in relations between the world's two largest economies. Just weeks ago, Trump had dismissed the need for talks with Chinese President Xi Jinping, fueling fears of a prolonged trade war. Now, the leaders are set to finalize the deal at the APEC summit on October 31 in South Korea, Yahoo Finance reported. The agreement also extends to broader geopolitical initiatives, including Trump's "global peace plan" for regions like the Middle East and Ukraine, Politico noted.

While the framework provides immediate relief, challenges remain. The Federal Reserve's upcoming policy meeting and broader macroeconomic uncertainties could influence the sustainability of the crypto rally. However, experts argue that resolving US-China tensions removes a key headwind for risk assets. Jeff Park of Bitwise Asset Management predicted that Bitcoin and gold could reach all-time highs if the deal holds and the Fed adopts a dovish stance, as reported by Cointelegraph.

The trade progress also has implications beyond cryptocurrencies. Traditional markets mirrored the optimism, with US and Asian equity futures rising and gold easing from record highs as traders rotated into risk assets, CoinDesk reported. For the crypto sector, the reprieve underscores its sensitivity to global trade dynamics—a trend that could accelerate institutional adoption as supply chains stabilize.

As the APEC summit approaches, investors will closely watch for final confirmation of the deal. For now, the market's rebound reflects a broader appetite for risk, with Bessent emphasizing that the framework "allows us to discuss many other things with the Chinese," according to a Coinotag report. The path forward, however, remains contingent on sustained diplomatic momentum and policy clarity from both Washington and Beijing.