U.S. Treasury Secretary Scott Bessent said Sunday that the U.S. and China have made “substantial” progress on a trade deal, raising investor hopes that the bull market could reignite.
Bessent said the proposed trade framework would likely eliminate the need for the 100% tariffs announced by US President Donald Trump on October 10th. He added:
“President Trump gave me tremendous negotiating power with his threat to impose 100% tariffs on November 1st. I believe we have arrived at a very substantive framework that will allow us to avoid that and discuss many other things with the Chinese side.”
Bessent’s comments followed weeks of easing trade tensions between the two countries, culminating in President Trump confirming a meeting with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit on October 31.
President Trump previously said there was “no reason” to meet with Chinese representatives, raising investor concerns that a new trade war between the two countries could drag on.
Cryptocurrency investors, traders, and industry executives celebrated the news on the trade framework and the growing likelihood of a US-China agreement, as the crypto market experienced a modest rally following positive trade deal news.
Related: Cryptocurrency traders slam Trump’s tariffs for ‘unusual event’: Santiment
Cryptocurrency markets rise as traders and investors celebrate trade framework
Cryptocurrency markets are sensitive to developments in trade wars, rising when there is positive news and falling when trade tensions erupt or global trade is disrupted.
On October 11, President Trump’s social media post announcing 100% additional tariffs on China caused a meltdown in the cryptocurrency market, with some cryptocurrency tokens losing up to 99% of their value in 24 hours.
Following Bessent’s announcement on Sunday, Bitcoin (BTC) edged up 1.8%, Ether (ETH) rose 3.6%, and Sol (SOL) rose 3.7%.
Jeff Park, an advisor at investment firm Bitwise, said the positive trade deal news will send Bitcoin and gold to new all-time highs.
Investor and analyst Anthony Pompliano added: “If the US-China trade deal is announced and the Fed cuts interest rates, asset prices are going to go crazy this week. Hold on tight.”
magazine: Hong Kong is not the loophole Chinese crypto companies think it is
