U.S. Treasury Secretary Scott Bessent said on Sunday that the U.S. and China had made “significant” progress in crafting a trade deal, raising hopes amongst investors of a revival of the bull market.
The proposed trade framework will likely eliminate the necessity for the 100% additional tariffs announced by US President Donald Trump on October 10, Bessent said. He added:
“President Trump gave me a whole lot of negotiating leverage with the specter of one hundred pc tariffs on November 1, and I believe we’ve reached a really substantive framework that can avoid that and permit us to debate many other things with the Chinese.”Scott Bessent spreads the word about positive trade negotiations between the US and China. Source: The White House
Bessent's comments follow weeks of easing trade tensions between the 2 countries, which culminated in President Trump confirming a gathering with China's President Xi Jinping on the Asia-Pacific Economic Cooperation (APEC) summit on October 31.
President Trump previously said there was “no reason” to satisfy with Chinese officials, sparking investor fears of a brand new, drawn-out trade war between the 2 countries.
Crypto investors, traders and industry leaders rejoiced on the news of the trade framework and the increased likelihood of a US-China deal, as crypto markets saw a slight boost on the positive news of a trade deal.
Crypto markets are recovering as traders and investors have fun the trading framework
Crypto markets are sensitive to trade war developments, rallying when there may be positive news and falling when trade tensions erupt or global trade is disrupted.
President Trump's October 11 social media post announcing additional 100% tariffs on China sparked a crypto market collapse that saw some crypto tokens lose as much as 99% of their value in 24 hours.
Bitcoin (BTC) gained a modest 1.8%, Ether (ETH) rose 3.6% and SOL (SOL) rose 3.7% following Bessent's announcement on Sunday.
Jeff Park, an advisor at investment firm Bitwise, said the positive trade deal news would push BTC and gold to recent all-time highs.
“Asset prices will go crazy this week when the US-China trade deal is announced and the Fed cuts rates of interest. Buckle up,” investor and analyst Anthony Pompliano also said.
