The U.S. and China reached a preliminary trade framework on October 26, averting threatened 100% tariffs and rare-earth export curbs, sparking a surge in cryptocurrency markets.
(BTC) climbed to $113,700, while (ETH) pushed above $4,040, with the global crypto market cap rising 1.9% to $3.92 trillion. U.S. Treasury Secretary Scott Bessent described the agreement as a "very substantial framework" that could stabilize trade relations ahead of leader-level meetings, as TheStreet reported.
The trade news followed a period of heightened volatility, marked by a $19 billion liquidation cascade in mid-October—the largest in crypto history. Bybit's September Volatility Report highlighted BTC's first term structure inversion since April 2025, driven by renewed U.S.-China tensions. Short-term volatility spiked as traders priced in risks from the tariff standoff, with
and briefly falling to $3,700 and $105,000, respectively, before rebounding, the report noted.The truce alleviated fears of a trade war that had previously erased $200 billion in crypto market capitalization in hours. Analysts noted that Bitcoin's price had fluctuated within an 8% range over four months, signaling potential for a larger move by year-end.
, meanwhile, saw bullish sentiment, with some experts projecting a push toward $5,000 if it closed above $4,525, according to a Benzinga analysis.Whales and institutional investors appeared to capitalize on the dip, with wallets holding 100–10,000 ETH accumulating 218,000 ETH ($870 million) in recent days. This accumulation contrasted with prior outflows during the market decline, underscoring renewed confidence in crypto's macroeconomic resilience, Yahoo Finance reported.
Amid the optimism, niche projects like Bitcoin
($HYPER) and Snorter Bot ($SNORT) emerged as top buys. Bitcoin Hyper, a Layer 2 solution aiming to boost BTC's scalability, raised $24.4 million in its presale, according to a Coindoo report. Snorter Bot, a Solana-based trading bot, secured $5.6 million in its final 24-hour presale phase, the Cryptopolitan article said, with analysts predicting a 100x price surge post-launch.BlackRock's recent expansion of its iShares Bitcoin ETP to the London Stock Exchange further signaled traditional finance's growing embrace of crypto. The ETP, trading at $10.78, now offers UK investors exposure to Bitcoin with "robust custody and regulatory oversight," according to BlackRock's Jane Sloan, as reported by Coindoo.
While the trade deal provided immediate relief, risks linger. U.S.-China negotiations remain fragile, and the Federal Reserve's rate outlook will shape broader market sentiment. For crypto, the focus now shifts to whether sustained geopolitical stability can catalyze a full bull market resurgence, the Coin Republic report said.
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