Bitcoin News Update: US-China Agreement Prevents Full Tariffs, Boosting Cryptocurrency Market

On October 26, US Treasury Secretary Scott Bessent revealed that the US and China have agreed on a significant trade framework, preventing the 100% tariffs that President Donald Trump had previously threatened and igniting a surge in cryptocurrency prices. The agreement, reached after two days of negotiations in Malaysia, is designed to bring stability to global supply chains and ease economic uncertainty, with

climbing 1.8% to $113,500 and Ether jumping 3.6% as investors responded positively, .

This framework, which followed weeks of rising tensions, eliminates the immediate threat of tariffs that had caused a $200 billion drop in the crypto market just days before. Bessent attributed the breakthrough to Trump’s ultimatum on October 10, which warned of steep tariffs starting November 1, giving the US strong bargaining power. "President Trump provided significant leverage with the threat of 100% tariffs, and I believe we have achieved a robust framework that avoids them," Bessent stated in an interview with CBS,

. The agreement also includes China’s pledge to postpone rare earth export restrictions and address chemicals used to make fentanyl, while the US secured agricultural deals for American farmers, .

The crypto sector responded quickly, pushing the total market capitalization up to $3.88 trillion. Bitcoin’s recovery followed a sharp 10% decline after Trump’s initial tariff threat, which led to forced liquidations and accusations of market manipulation against platforms like Binance,

. Experts highlighted the link between trade developments and crypto price swings, referencing past instances where easing tensions led to rallies in digital assets. "If the US-China trade agreement is finalized and the Fed reduces rates, asset prices could become extremely volatile this week. Get ready," said well-known crypto analyst Anthony Pompliano, as cited by Cointelegraph.

The talks represent a major shift in the relationship between the two largest economies. Only a few weeks earlier, Trump had dismissed the need for discussions with Chinese President Xi Jinping, raising concerns about a drawn-out trade conflict. Now, both leaders are expected to formalize the agreement at the APEC summit on October 31 in South Korea,

. The deal also covers broader diplomatic efforts, including Trump’s “global peace plan” for areas such as the Middle East and Ukraine, according to Politico.

Although the framework offers immediate relief, uncertainties persist. The Federal Reserve’s upcoming meeting and wider economic factors could impact whether the crypto rally continues. Still, analysts believe that resolving US-China trade friction removes a major obstacle for riskier assets. Jeff Park from Bitwise Asset Management suggested that both Bitcoin and gold could hit new highs if the agreement holds and the Fed adopts a more accommodative policy, as Cointelegraph reported.

The progress in trade talks also affects markets beyond crypto. Traditional financial markets reflected the upbeat mood, with US and Asian stock futures rising and gold pulling back from record levels as investors shifted toward riskier assets,

. For the digital asset industry, the relief highlights its vulnerability to global trade shifts—a pattern that may speed up institutional involvement as supply chains become more secure.

With the APEC summit nearing, investors are watching closely for official confirmation of the agreement. For now, the market’s recovery signals a renewed appetite for risk, with Bessent noting that the framework "opens the door for us to discuss a range of other issues with China," as reported by Coinotag. However, the future direction will depend on continued diplomatic progress and clear policies from both Washington and Beijing.