Crypto markets rise as US and China reach trade deal framework easing tariff concerns
Cryptocurrency markets posted modest gains over the weekend after US Treasury Secretary Scott Bessent confirmed that the United States and China have reached an initial framework agreement on Chinese export controls for rare earth minerals. The accord is expected to ease tensions and avert the previously threatened 100% tariffs on Chinese imports, providing a relief boost to global markets.
According to Simon Peters, Crypto Analyst at eToro, the news has fueled renewed investor optimism. Bitcoin climbed over 3% in the past 24 hours, trading around $115,300, while Ethereum advanced 5% and Solana gained 3%.
“The progress on US–China trade negotiations has provided a lift across risk assets, with crypto markets responding positively to improved investor sentiment,” Peters noted.
Market focus now shifts to key macroeconomic events later this week. US President Donald Trump and Chinese President Xi Jinping are expected to meet during the Asia-Pacific Economic Cooperation (APEC) Summit in South Korea on Thursday, an encounter that could further shape investor confidence in global trade stability.
Meanwhile, investors are closely watching Wednesday’s US Federal Reserve meeting, where policymakers are expected to decide on interest rates. Last week’s cooler-than-expected inflation data strengthened expectations that the Fed could continue its rate-cutting cycle, potentially announcing another reduction on December 10, 2025.
Data from the CME FedWatch Tool indicates a 97% probability of a 25-basis-point rate cut at Wednesday’s meeting and a 96% probability of an additional cut in December. Peters added that further monetary easing and dovish commentary from Fed Chair Jerome Powell could support continued upward momentum in the crypto sector.
With geopolitical tensions easing and expectations of looser monetary policy, analysts suggest that digital assets may continue to benefit from improving market sentiment in the weeks ahead.
