Ethereum Update: Trump-Xi Meeting and Federal Reserve Actions Intersect—The Future of Crypto Remains Uncertain

This week’s Trump-Xi summit in Gyeongju, South Korea, has become a critical event for global financial markets, with crypto traders closely watching for its effects on trade relations and supply chains. Taking place alongside the APEC summit, the meeting is considered highly likely—prediction platform Kalshi gives it a 93% chance, with more than $6 million staked, as highlighted in a

. The summit’s agenda centers on resolving U.S.-China trade frictions, notably Trump’s proposed 100% tariffs on Chinese goods scheduled for November 1. Treasury Secretary Scott Bessent revealed that a “significant framework” was agreed upon in Malaysia to avert these tariffs, which could help steady crypto markets that depend on semiconductor and rare earth supply chains, according to the same Coinotag report.

The Federal Reserve’s expected 25-basis-point rate reduction on October 29 adds another layer of uncertainty. Markets are currently factoring in a 96.7% likelihood of the cut, which may encourage risk-taking and support a crypto recovery, as detailed in a

. This dovish policy move fits into a broader trend of monetary easing, which has historically been followed by 20-30% increases in Bitcoin’s price in the months after, according to a . At the same time, the ETF decision is approaching, with the SEC expected to announce its verdict by October 30. Approval of an ETF that includes staking could attract institutional capital, potentially sparking a rally similar to Bitcoin’s ETF surge and accelerating adoption of alternative coins, as discussed in a .

These overlapping developments have already influenced crypto prices.

jumped to $113,500 after news of a preliminary U.S.-China trade deal, pushing the total crypto market value to $3.92 trillion, according to . Both Ethereum and posted gains as well, with ETH climbing above $4,040. Still, experts warn that the tentative agreement could fall apart, leading to renewed volatility if talks break down. The Trump-Xi discussions in South Korea are expected to finalize the deal, but unresolved geopolitical issues—such as tensions over Taiwan—continue to pose risks, as previously mentioned.

Nonetheless, challenges remain. Optimism about Thursday’s summit was underscored by

. Meanwhile, North Korean hackers are increasingly using AI to automate cryptocurrency thefts, with groups like Lazarus Group projected to steal $2 billion in 2025 through AI-powered smart contract attacks and deepfake scams, according to a . Additionally, global investment in AI is surging, with spending expected to reach $1.48 trillion in 2025, which could transform blockchain technology through quantum-resistant encryption and decentralized AI systems, as reported by .

Market participants are urged to remain vigilant. While a positive outcome from the Trump-Xi summit and a Fed rate cut could propel Bitcoin toward $150,000, setbacks—such as a breakdown in trade negotiations or hawkish signals from the Fed—could prompt sharp declines. The result of the Ethereum ETF decision will also be a key test for altcoins, with assets like Solana and Ripple (XRP) likely to experience heightened volatility in response to regulatory developments, as highlighted in a Coinotag analysis.

The events of this week could reshape the market landscape for 2025. A lasting U.S.-China trade agreement, combined with supportive monetary policy, could encourage wider adoption of cryptocurrencies. On the other hand, renewed disputes or regulatory setbacks may increase uncertainty, reinforcing Bitcoin’s appeal as a safe-haven asset. As the crypto sector navigates this crucial period, the intersection of geopolitics, macroeconomic trends, and technological progress will continue to drive its direction, with further updates provided in a

.