Bitcoin News Today: U.S.-China Trade Deal Offers Crypto a Fragile Truce, But Fear Lingers

The U.S.-China trade deal announced by President Donald Trump has injected cautious optimism into the crypto market, with the Crypto Fear & Greed Index climbing to 37 from 33, signaling a potential recovery from extreme fear levels. The agreement, which suspends heightened tariffs on Chinese imports until November 10, 2026, aims to stabilize global markets and indirectly supports crypto recovery by reducing trade war uncertainties, according to a Coinotag report. Analysts, including Michael van de Poppe of MN Trading Capital, suggest the October 11 crash—where $19 billion in crypto assets were liquidated—may mark the bottom of a bull cycle, as noted in a TradingView analysis. Despite modest gains in Bitcoin and Ether prices, the market remains in a "Fear" zone, with experts urging patience as institutional confidence rebuilds, a TradingView piece added.

The trade deal's impact on crypto sentiment has been mixed. While the suspension of tariffs has eased short-term tensions, the market has yet to show a dramatic rebound. Bitcoin trades at $110,354, up 0.26% in 24 hours, while Ether rose 0.84% to $3,895, according to a Yahoo Finance article. However, the broader crypto market cap dipped 1.4% to $3.76 trillion, reflecting lingering uncertainty, per a Business Standard report. Analysts like Derek Lim of Caladan caution that China's lack of public confirmation on key issues—such as rare earth exports—leaves room for volatility, as highlighted in a CoinDesk article.

Historically, trade policy shifts have closely influenced crypto flows. For instance, Trump's April 9 announcement of a 90-day tariff suspension lifted the Fear & Greed Index from an "Extreme Fear" low of 18 to 39 within 24 hours. Conversely, his October threat of 100% tariffs triggered a $19 billion liquidation event, pushing the index to 18. The current deal, while positive, has not yet spurred a surge in risk-on behavior. Traders like Ash Crypto and 0xNobler have labeled the agreement "Bullish for markets" and "GIGA BULLISH NEWS," respectively, but market participants remain wary.

Macroeconomic factors further complicate the outlook. The Federal Reserve's recent 25-basis-point rate cut and its plan to end quantitative tightening by December have created a more accommodative environment for crypto assets. However, dissenting votes at the Federal Open Market Committee meeting and uncertainty around future rate cuts have dampened immediate optimism.

Key Takeaways

- : The U.S.-China tariff suspension until 2026 aims to stabilize markets, with crypto analysts viewing it as a potential catalyst for recovery.

- : The Fear & Greed Index's rise to 37 suggests fading extreme fear, though the market remains cautious.

- : Experts like van de Poppe argue the October crash marked a "bottom day," positioning Bitcoin and altcoins for a long-term bull run.

As the crypto market navigates these developments, investors are advised to monitor both trade dynamics and central bank policies, which will likely dictate near-term volatility and long-term trends.