Bitcoin News Today: U.S.-China Trade Thaw Sparks Crypto Rally: Bitcoin Surges Past $115K, Altcoins Rebound

Bitcoin surged past $115,000 on Oct. 26, 2025, marking its highest level in nearly two weeks, as progress in U.S.-China trade negotiations eased fears of a new tariff war and triggered a rally across the crypto market. The benchmark asset erased losses from a recent liquidation cascade, with short positions worth $370 million liquidated in the 24 hours following the breakthrough, according to Coinglass data reported by Coindesk. Altcoins also rebounded, with Ethereum (ETH) climbing 2.6% to $4,060 and Solana (SOL) rising 4.5% to $198.07, signaling renewed risk appetite among traders.

The U.S. and China announced a "preliminary consensus" on key trade issues, including export controls, fentanyl regulations, and shipping levies, during two days of talks in Malaysia. U.S. Treasury Secretary Scott Bessent stated that President Donald Trump's threat of 100% tariffs on Chinese goods is "effectively off the table," while Chinese Vice Premier He Lifeng emphasized "mutual benefit and win-win results" for the bilateral relationship, according to a TheStreet report. The development alleviated concerns of a global supply chain disruption, with the broader crypto market cap climbing 1.8% to $3.72 trillion, reversing earlier declines linked to macroeconomic volatility, as reported by Coindesk.

The U.S.-China trade thaw coincided with a broader market rally, as U.S. and Asian equity futures advanced and gold retreated from record highs. Analysts attributed the crypto rebound to reduced geopolitical uncertainty, with institutional investors re-entering risk assets after weeks of caution. "The easing of trade rhetoric has given traders breathing room," said one market observer, noting that the Federal Reserve's upcoming policy meeting could further influence Bitcoin's trajectory, a point also highlighted by Coindesk.

Ethereum and altcoins extended gains as traders priced in a near-term resolution to tariff threats. XRP surged 2.3% to $2.64, building on last week's rally tied to ETF optimism, while BNB and Solana each gained roughly 4.5%. The Bitcoin dominance metric rose to 57.7%, reflecting its role as a safe-haven asset amid macroeconomic uncertainty, TheStreet reported.

U.S. Treasury Secretary Scott Bessent described the Malaysia negotiations as a "very substantial framework" that could prevent the 100% tariff escalation and secure a pause on China's rare-earth export curbs. The agreement, set to be finalized during an in-person Trump-Xi meeting at the APEC summit on Oct. 31, represents a pivot from earlier hardline rhetoric, including Trump's October announcement of 500% tariff threats, according to TheStreet.

Crypto analysts and industry experts expressed optimism about the trade developments. Jeff Park of Bitwise predicted Bitcoin and gold could hit new all-time highs if the U.S.-China deal is confirmed and the Fed cuts interest rates. Anthony Pompliano, a crypto analyst, warned of potential volatility as markets react to the convergence of trade news and central bank policies, according to Coinotag. On-chain data from Santiment showed increased accumulation during positive trade sentiment cycles, suggesting institutional interest in crypto could accelerate with sustained stability, the Coinotag piece noted.

The Trump-Xi summit in South Korea remains a key event to watch, with a 93% probability of occurring, according to a Coinotag preview. The meeting could address semiconductor and rare-earth supply chains, critical for crypto mining hardware, and determine whether trade barriers will inflate hardware costs for miners.