Bitcoin News Today: Supply Chain Relief from US-China Truce Fuels Crypto Market Rally

The United States and China have reached a significant trade agreement, temporarily suspending plans to expand sanctions on Chinese firms and easing tensions that had rattled global markets. The deal, announced by China's Ministry of Commerce and corroborated by a Bloomberg report, sees the U.S. delaying implementation of its so-called "50% rule" for one year, a move that would have expanded trade restrictions to Chinese subsidiaries owned by sanctioned entities. In return, China will defer its own rare-earth export controls by 12 months, averting potential disruptions in critical supply chains for industries ranging from semiconductors to cryptocurrency mining.

The agreement marks a pivotal shift in U.S.-China relations, with President Donald Trump emphasizing during a press conference in South Korea that the two nations are "going to have a fantastic relationship for a long period of time," a meeting that Coinotag said may ease tariff pressures on Bitcoin. The deal includes reduced fentanyl-related tariffs on Chinese goods and a pause on reciprocal tariffs, while China commits to resuming soybean imports from the U.S. The easing of these measures has already spurred a rally in cryptocurrency markets, with Bitcoin surging 1.59% to $113,367 and Ethereum up 2.7% as global supply chain concerns waned, Bitget reported.

The U.S. has also granted India a six-month sanctions waiver for its operations at Iran's Chabahar Port, a strategic hub for regional trade and connectivity. The Ministry of External Affairs confirmed the extension, according to Firstpost, and Dynamite News also reported the waiver. Business Standard covered India's securing of the six-month exemption, which allows India to continue using the port to bypass Pakistan and ship goods to Afghanistan and Central Asia. The waiver, first announced in 2018 and recently revoked, was reinstated amid diplomatic efforts to stabilize regional trade routes. India's negotiations with the U.S. for a broader trade agreement remain ongoing, with officials studying the implications of recent sanctions on Russian oil companies.

The U.S.-China trade détente comes as cryptocurrency markets grapple with lingering volatility. Earlier in October, Trump's threat to impose an additional 100% tariff on Chinese goods triggered a sharp selloff, with Bitcoin plummeting from $121,560 to below $103,000. However, the recent agreement has restored some investor confidence, with analysts, as CoinPedia observed, noting that easing trade tensions could pave the way for Bitcoin to reach new highs if the Fed adopts dovish policies. The crypto market's total value has rebounded to $3.83 trillion, with Bitcoin and Ethereum leading the recovery.

The U.S.-China deal is expected to foster broader cooperation on global supply chains and technology sharing, particularly in blockchain and AI sectors. The Basel Cryptoasset Standard (SCO60), now in effect, and China's digital RMB (e-CNY) initiatives highlight the growing alignment on regulatory frameworks. CoinEdition reported that the détente is seen as bullish for blockchain tech sharing and regulation. Meanwhile, the Chabahar Port waiver underscores India's strategic role in regional connectivity, with the port serving as a key node in the International North-South Transport Corridor (INSTC).

Despite the positive developments, analysts caution that the agreement remains fragile. The Trump-Xi summit in South Korea, while optimistic, faces domestic pressures to deliver concrete results. A collapse in negotiations could reignite market turbulence, as seen in October when tariff threats triggered a $200 billion crypto market loss. Yahoo Finance questioned whether crypto could face another bloodbath if talks falter.

Separately, Russia's oil exports have held steady, with fresh sanctions yet to make an impact, MarketScreener reported.