Bitcoin News Today: Trade Deal Boosts Crypto, But Geopolitical Jitters Trigger ETF Exodus

The U.S.-China trade agreement announced in October 2025 has sent ripples through global financial markets, including the cryptocurrency sector, as nations recalibrate strategies amid shifting geopolitical dynamics. The one-year pact, which reduces U.S. tariffs on Chinese goods to 47% and eases chip-export restrictions, has been credited with a short-term rebound in Bitcoin and other major digital assets, though volatility persists, according to a Blockchain Magazine report. Meanwhile, Russian officials have hinted at potential regulatory shifts, with envoy Kirill Dmitriev suggesting the Ukraine war could conclude within a year, a development that may indirectly influence Moscow's approach to crypto legalization for foreign trade.

The trade deal's immediate impact on crypto markets was evident as Bitcoin surged from $108,000 to nearly $110,000 within hours of the announcement; Ethereum, Solana, and other altcoins also saw gains, though the broader market soon reversed course. By the following day, long liquidations totaled $150 million in the wake of the Trump-Xi meeting, according to an FXStreet report. Analysts attributed the sell-off to lingering macroeconomic uncertainty, including hawkish remarks from Federal Reserve Chair Jerome Powell, and the broader market's sensitivity to geopolitical risks.

U.S. spot Bitcoin ETFs, meanwhile, faced $471 million in outflows despite the initial optimism, the Blockchain Magazine piece noted. Fidelity's BTC fund and BlackRock's IBIT led the exodus, reflecting cautious sentiment among institutional investors. However, some market observers remain bullish, noting that the trade deal's resolution of tariff disputes and diplomatic progress between Washington and Beijing could pave the way for renewed crypto adoption. Analyst Ali Martinez highlighted Bitcoin's improved Sharpe Ratio as a sign of reduced risk, with a potential rebound to $120,000 in November if momentum continues.

The geopolitical context adds complexity to these developments. Russian envoy Dmitriev's remarks on the Ukraine war, made during a Saudi investment conference, underscored the fluidity of global conflicts and their potential to reshape economic priorities. While no direct statements on crypto policy emerged from Moscow, the timing aligns with speculation that countries like Russia may seek to leverage digital assets for foreign trade as traditional financial systems face renewed scrutiny.

The U.S.-China trade agreement's ripple effects also highlight the broader tension between regulatory clarity and market innovation. As Mastercard moves toward acquiring Zerohash to streamline crypto settlements, and platforms like Blazpay raise funds through audited presales, the infrastructure for cross-border digital transactions continues to evolve. These developments may pressure regulators worldwide to adopt more structured frameworks, particularly as geopolitical shifts create new opportunities-and risks-for digital asset adoption.