The U.S. and China reached a preliminary trade framework this week, easing global supply chain concerns and sparking a rally in cryptocurrency markets.
(BTC) surged 3.5% to $115,235 over the weekend, while the broader crypto market hit a $3.92 trillion valuation, reversing losses from earlier this month when Trump's tariff threats triggered a $200 billion market wipeout, according to a . The deal, announced during Trump's Asia tour, includes China delaying rare earth export controls and committing to U.S. soybean purchases, averting 100% tariffs per Treasury Secretary Scott Bessent, according to a .
The trade détente has bolstered risk appetite, with Bitcoin breaking above $113,000 for the first time in ten days and
(ETH) climbing past $4,253. Analysts attribute the gains to reduced geopolitical uncertainty and expectations of Federal Reserve rate cuts. "This framework addresses one of the most significant global supply chain threats, giving markets more clarity as the year draws to a close," noted in . Bitwise's Jeff Park predicts new Bitcoin highs if the trade agreement solidifies and the Fed adopts dovish policies, while Anthony Pompliano warns of potential volatility if the deal is finalized alongside rate cuts, according to a .The agreement's fragility remains a concern. The upcoming Trump-Xi summit in South Korea is pivotal, with strategists cautioning that a collapse could reignite market turbulence, according to
. On-chain data shows mixed signals, with transaction volumes lagging price recovery, suggesting caution for short-term traders. Meanwhile, institutional investors are reallocating capital, with U.S. Bitcoin ETFs seeing a $446 million inflow last week, led by BlackRock's IBIT — Decrypt also reported these flows.Technical analysis highlights resistance at $117,600 for Bitcoin, a level that, if broken, could push
toward $120,500. However, failure to clear this hurdle may trigger a pullback to $112,200. The RSI at 55 indicates room for further gains but not yet overbought conditions, CryptoRank noted.The trade talks also intersect with broader macroeconomic trends. The Fed's October 29 meeting looms, with markets pricing in a 99% probability of a 25-basis-point rate cut. Easing U.S.-China tensions could amplify liquidity-driven gains for risk assets, including crypto. However, Congress has warned Trump against relaxing export controls on advanced AI chips like Nvidia's Blackwell, fearing China's military applications, according to
.Despite optimism, challenges persist. The APEC summit in November will test the durability of the trade framework, while geopolitical risks—such as China's rare-earth export restrictions—remain unresolved. For now, traders are betting on stability, with Bitcoin holding above $113,500 and altcoins like Hyperliquid (HYPE) surging 14.6%, according to
.
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