Bitcoin Updates: Cryptocurrency Markets Surge Following US-China Trade Agreement, Reducing Global Tensions

The United States and China have made notable progress in reducing trade friction, revealing an initial framework agreement on October 26 that will prevent a 100% tariff on Chinese goods and postpone restrictions on rare earth exports, as reported by

. This arrangement, reached after two days of talks in Malaysia and expected to be formally agreed upon by President Donald Trump and President Xi Jinping in South Korea, has sparked a global market rally, including a significant jump in cryptocurrency values, according to Beincrypto. (BTC) soared to $113,500, and the overall crypto market capitalization hit $3.88 trillion, reversing the instability caused by the tariff announcement on October 10, as noted by .

The framework tackles major issues such as American tariffs on Chinese products and China’s curbs on rare earth exports. U.S. Treasury Secretary Scott Bessent called the deal a "very substantial framework" that removes the immediate danger of Trump’s 100% tariffs, which had previously erased $200 billion from the crypto market, according to

. Chinese Vice Premier He Lifeng highlighted "basic consensuses" on matters like fentanyl regulation, agricultural trade, and shipping fees, suggesting a move away from the previously tough stance, The Street reported.

Digital asset markets reacted quickly to the announcement. Bitcoin’s value increased by 1.8% to $113,600, while

(ETH) surpassed $4,040, according to Beincrypto. Data from derivatives markets indicated $319 million in short positions were liquidated within a day, showing renewed optimism, as reported by . At the same time, stablecoin transactions reached a new peak, with Tether’s accounting for 79% of payment activity, highlighting increased real-world use, according to .

The agreement also shifted investment flows in crypto funds. On October 23, Bitcoin spot ETFs attracted $20.33 million, while Ethereum ETFs saw $127.47 million withdrawn, indicating a shift toward Bitcoin amid global economic uncertainty, as per

. BlackRock’s iShares Bitcoin Trust (IBIT) led with $107.78 million in new investments, while Grayscale’s experienced $60.49 million in outflows, CryptoNews stated. Analysts link this trend to Bitcoin’s reputation as a safe haven during geopolitical turmoil, with Jeff Mei from BTSE telling that “as long as U.S.-China trade tensions persist, volatility will remain.”

The October volatility surge had previously caught investors by surprise. A $19 billion wave of liquidations pushed BTC’s implied volatility to its highest level in months, with short-term volatility spiking after the tariff news, according to the

. The report pointed out a rare inversion in the term structure, signaling short-term uncertainty, and noted that options traders were demanding a 13% premium for bearish bets. Although the recent trade agreement has calmed some nerves, experts warn that fundamental issues are unresolved. Mei also remarked that “macro factors are driving daily market shifts,” and a lasting solution depends on the Trump-Xi meeting.

The impact of the deal reached beyond cryptocurrencies. Brent crude futures climbed above $66 per barrel, and WTI crude approached $62, as trade war concerns eased, according to

. However, U.S. sanctions on Russian energy companies like Rosneft and Lukoil continued to support oil prices, TradingView added.

With the Federal Reserve’s policy meeting approaching, markets are now anticipating a steadier economic environment. If the trade agreement is finalized, it could open the door to wider cooperation, such as increased Chinese purchases of American farm products and joint regulation on fentanyl, as reported by

. For the crypto sector, the short-term outlook is cautiously positive, though traders remain alert to political shifts. As Arthur Hayes from BitMEX told , “Trade disputes bring volatility, and volatility means big swings for $BTC. The game is still on.”