Bitcoin News Today: U.S.-China Trade Truce Becomes Crypto's Lifeline, Markets Stabilize

The U.S. and China have reached a preliminary trade framework to avoid 100% tariffs on Chinese goods, easing global market tensions and sparking a rally in cryptocurrency prices. The agreement, announced after high-level negotiations in Malaysia, comes as President Donald Trump prepares to meet Chinese President Xi Jinping at the APEC summit on October 30. U.S. Treasury Secretary Scott Bessent confirmed the deal would "avoid" the threatened tariffs and allow further discussions on trade and supply chain issues, according to BeinCrypto.

Bitcoin (BTC) surged 1.8% to $113,700, while Ethereum (ETH) and Solana (SOL) rose 3.6% and 3.7%, respectively, as traders reacted to the news, Coinotag reported. The total crypto market cap climbed to $3.92 trillion, reversing weeks of volatility triggered by Trump's October 10 announcement of tariffs, according to TheStreet. "President Trump gave me great negotiating leverage with the tariff threat," Bessent said, adding the framework could open doors for broader cooperation, Cointelegraph reported.

The talks in Kuala Lumpur, held alongside the ASEAN summit, marked a critical juncture for the two largest economies, which had clashed over rare earth export controls, technology restrictions, and agricultural trade. Chinese Vice Premier He Lifeng emphasized "mutual benefit and win-win results," urging both sides to "properly address each other's concerns," TheStreet reported. The agreement includes a deferral of China's rare earth export curbs and steps to stabilize trade relations ahead of the November 10 deadline for a temporary truce, BeinCrypto noted.

The de-escalation has injected optimism into global markets, which had braced for a trade war. The S&P 500 erased $1.2 trillion in value within 40 minutes of Trump's initial tariff announcement, while Bitcoin plummeted over 10%, wiping $200 billion from the crypto market, BeinCrypto reported. Analysts now suggest the truce could pave the way for a broader resolution, with Trump and Xi expected to finalize details at the APEC summit in Gyeongju, South Korea, Coinotag noted.

The cryptocurrency's rebound underscores its sensitivity to macroeconomic and geopolitical developments. Bitcoin had previously struggled amid fears of a trade war, with spot ETFs registering net outflows of $101 million on October 22, according to Bitzo. However, the trade framework and expectations of Fed rate cuts have reignited bullish sentiment. Galaxy Digital CEO Mike Novogratz noted that Bitcoin should stay above $100,000—a psychological level it retested after Trump's election victory—and could break higher if the Fed or Trump intervenes in crypto policy, Bitzo reported.

The U.S. and China are also set to address fentanyl-related law enforcement coordination and agricultural trade, with soybean imports a key sticking point. China's September soybean imports from the U.S. fell to zero, prompting Trump to call it a "negotiation tactic," UkrAgroConsult reported. A resolution could unlock billions in U.S. farm exports and stabilize global food prices, UkrAgroConsult added.

Investors will closely watch Friday's CPI data, with analysts warning that a reading above 3.1% could reignite inflation concerns and pressure Bitcoin, Bitzo warned. The APEC summit will also test diplomatic efforts, as Trump seeks to balance trade talks with a potential meeting with North Korean leader Kim Jong-un, the Korea Times reported. Additionally, the Trump administration is weighing curbs on U.S. software exports to China, according to Seeking Alpha, while Beijing's export controls on rare earths remain a flashpoint, reported Turkiye Today.

The outcome of these developments could shape the trajectory of both the U.S.-China relationship and the crypto market. As BlackRock's IBIT and other ETFs show renewed inflows, the stage is set for a volatile week of outcomes that may determine whether Bitcoin's rally continues—or faces another correction, Bitzo observed.

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