The Trump-Xi summit in Gyeongju, South Korea, this week has emerged as a pivotal event for global markets, with crypto investors bracing for its impact on trade tensions and supply chains. Scheduled during the APEC summit, the meeting carries a 93% probability of occurring, according to prediction market Kalshi, with over $6 million in bets wagered, as noted in a
. The summit aims to address U.S.-China trade disputes, including Trump's planned 100% tariffs on Chinese imports set for November 1. Treasury Secretary Scott Bessent announced a "very substantial framework" reached in Malaysia to avoid these tariffs, potentially stabilizing crypto markets reliant on semiconductor and rare earth supply chains, according to the same Coinotag report.
The Federal Reserve's anticipated 25-basis-point rate cut on October 29 further complicates the week's volatility. Markets are pricing in a 96.7% chance of the cut, which could bolster risk-on sentiment and support crypto's rebound, as covered by a
. This dovish move aligns with broader easing cycles, historically correlating with 20-30% gains in Bitcoin's value over subsequent months, according to a . Meanwhile, the ETF decision looms, with the SEC expected to rule by October 30; approval of a staking-enabled ETF could unlock institutional inflows, mirroring Bitcoin's ETF-driven rally and accelerating altcoin adoption, as discussed in a .Crypto markets have already reacted to these converging forces.
surged to $113,500 following the preliminary U.S.-China trade agreement, lifting the total market cap to $3.92 trillion, according to . Ethereum and also saw gains, with ETH surpassing $4,040. However, analysts caution that the fragile truce could unravel, reigniting volatility if negotiations falter. The Trump-Xi meeting in South Korea is expected to finalize the framework, but geopolitical risks—such as Taiwan tensions—remain unresolved, as previously reported.Beyond macroeconomic factors, sector-specific catalysts are driving activity. The MegaETH ICO on Sonar, launching October 27, aims to boost Ethereum Layer 2 adoption, while BlackRock's ETH staking ETF application deadline on October 30 adds regulatory clarity, as covered in the Yahoo Finance roundup. Institutional interest is also rising, with Coinbase's earnings report on October 31 offering insights into trading volumes and custody services amid the recent rally.
However, risks persist. Optimism about a Thursday summit was highlighted by
. North Korean hackers are leveraging AI to automate crypto heists, with state-sponsored groups like Lazarus Group stealing $2 billion in 2025 through AI-driven smart contract exploits and deepfake infiltration, according to a . Additionally, AI investment is surging, with global spending projected to hit $1.48 trillion in 2025, potentially reshaping blockchain ecosystems through quantum-resistant cryptography and decentralized AI networks, as reported by .Investors are advised to remain cautious. While a successful Trump-Xi summit and Fed cut could extend Bitcoin's rally to $150,000, setbacks—such as a failed trade deal or hawkish Fed signals—could trigger sharp corrections. The Ethereum ETF outcome will also test altcoin resilience, with tokens like Solana and Ripple (XRP) likely to see amplified effects from regulatory clarity, as noted in a Coinotag analysis.
The week's outcomes could redefine 2025's market dynamics. A sustained U.S.-China trade truce, coupled with accommodative monetary policy, may foster broader crypto adoption. Conversely, renewed tensions or regulatory delays could stoke uncertainty, reinforcing Bitcoin's role as a safe-haven asset. As the crypto community navigates this pivotal week, the interplay of geopolitics, macroeconomic shifts, and technological innovation will remain central to its trajectory, with additional developments noted in a
.
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