Negotiations between the US and China, held in Malaysia, ended with a preliminary agreement that will prevent the introduction of 100% tariffs on Chinese goods. The news became a powerful trigger for the recovery of global markets.
Cryptocurrencies were the first to react — investors once again believed in the possibility of stabilizing the global economy and renewed interest in risk assets.
Negotiations That Changed the Market Tone
US Treasury Secretary Scott Bessent confirmed that the parties reached a mutual understanding after two days of talks with Chinese international trade representative Li Chengang. According to him, the discussion was constructive and resulted in the formation of a framework agreement that will prevent the escalation of the tariff conflict and create conditions for continued dialogue.
The deal should become the basis for further agreements. Already on Thursday in South Korea, a personal meeting between Donald Trump and Xi Jinping is expected, at which the parties intend to approve the final details of the agreement. According to preliminary data, the new format of cooperation involves a gradual reduction of trade restrictions and coordination of tariff policy to avoid shocks in global markets.
The Crypto Market Reacts to Easing Tensions
As soon as the news of the agreement became public, the cryptocurrency market responded with strong growth. Bitcoin rose by 1.8%, exceeding $113,600, while Ethereum climbed above $4,040. The total capitalization of digital assets grew to $3.88 trillion, reaching the highest level in recent weeks.
This surge became a turning point after a sharp drop on October 10, when statements about possible tariffs up to 155% from the US triggered mass sell-offs and a $200 billion decrease in market capitalization in just a few hours. Against the backdrop of the new diplomatic agenda, investors are returning to crypto assets, expecting a recovery in liquidity.
Trump Softens Rhetoric — Markets Respond with Growth
According to sources in the White House, Trump considers the agreements reached as “a victory for the American economy” and proof that the US’s tough stance “forced Beijing to come to the negotiating table.” However, this time the president refrained from harsh statements and focused on achieving consensus, which helped reduce the level of tension.
Economists note that the softening of trade rhetoric between the world’s two largest economies inevitably affects cryptocurrencies, which traditionally react to increases or decreases in global risks.
“Every time global markets shift from panic mode to trust mode, investors return to digital assets. Right now, we are seeing exactly this scenario,” says ACY Securities analyst Michael Hoffman.
Historical Context: How Tariffs Have Affected Cryptocurrencies
The market remembers that the 2018–2019 trade war between the US and China was accompanied by spikes in cryptocurrency volatility. Back then, bitcoin was seen as a “safe haven asset” against economic risks. Today, the situation is different: cryptocurrencies are now seen more as a barometer of risk appetite.
When tariff pressure increases, capital flows into the dollar and bonds. But when there are signs of de-escalation — as now — traders return to bitcoin, Ethereum, and altcoins. That is why the agreement in Malaysia became not just a diplomatic event, but a catalyst for the growth of digital assets.
Outlook and Analysts’ Reactions
Against this backdrop, analysts note signs of a recovery of the “bullish trend” in the market. Participants expect that by the end of the fourth quarter, the market may update local highs if US-China negotiations develop positively.
In addition, an improved macroeconomic environment could accelerate the inflow of institutional capital into cryptocurrency funds. Falling volatility and the removal of the threat of a trade war give funds arguments to gradually increase the share of digital assets in portfolios.
What’s Next?
The market is closely watching the upcoming meeting between Trump and Xi Jinping. If the parties consolidate their success and announce a phased removal of tariffs, cryptocurrencies could show a new wave of growth. Otherwise, uncertainty will return and volatility will increase.
For now, investors view the Malaysian agreement as the first real step toward reducing tension in global trade. And judging by bitcoin’s dynamics, the market believes that crypto spring may come sooner than expected.
Read more: Sharplink Gaming invested $80 million in Ethereum after a month-long break
