Signs of easing US-China trade tensions are fueling renewed confidence in global markets, including cryptocurrencies. Scott Bessent, the US Treasury secretary, indicated that negotiations have made “substantial” progress, potentially preventing the implementation of the 100% tariffs threatened by President Donald Trump. According to Bessent, the deal would facilitate further discussions between the US and China, easing fears of prolonged trade hostilities.
“President Trump gave me a great deal of negotiating leverage with the threat of 100% tariffs on November 1, and I believe we have reached a very substantial framework that will avoid that and allow us to discuss many other things with the Chinese.”
These comments follow weeks of reduced tensions and a positive shift in the trade rhetoric, culminating in President Trump’s confirmation of a meeting with Chinese President Xi Jinping during the APEC summit, which traders viewed as a sign of potential normalization.
Furthermore, Trump’s earlier dismissal of the need to meet with Chinese officials had previously spooked markets, raising fears of a prolonged trade war which could depress global financial and crypto markets.
The crypto industry responded favorably to the news — Bitcoin, Ethereum, and Solana posted modest gains, in contrast to the substantial drops seen earlier following Trump’s announcement of new tariffs. Bitcoin rose approximately 1.8%, Ether increased by 3.6%, and Solana gained 3.7% amid the optimism.
Industry experts like Jeff Park from Bitwise suggest that if the trade deal is confirmed, Bitcoin and precious metals like gold could reach new all-time highs. Investor Anthony Pompliano echoed this optimism, warning that asset prices could surge if the deal and potential Fed rate cuts come to fruition, underscoring the interconnectedness of geopolitical stability and the crypto markets.
Overall, the momentum reflects a broader trend where geopolitical easing can spark bullish sentiment in the cryptocurrency sector, which remains highly sensitive to trade tensions and international policies affecting global markets.
This article was originally published as US Treasury Official Bessent Suggests US-China Trade War Could Be Ending Soon on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.
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