US-China Trade Truce: Bitcoin's Muted Response and Future Implications

2025-11-03 08:03:20

The United States and China have reached a preliminary trade framework agreement in Malaysia, easing global tensions and paving the way for a high-level meeting between President Trump and President Xi at APEC. This positive development has sparked a strong market reaction, with Bitcoin surging past $113,000 and Ethereum breaking the $4,000 mark.

Market Reaction: BTC Surges Past $113K on Relief Rally

The framework, which includes tariff suspensions and rare-earth export relief, has fueled a risk-on sentiment, propelling Bitcoin above $113,000—a 2.5% gain in hours. Ethereum followed suit, climbing over $4,000, with total crypto market cap rising 1.5% to $3.85 trillion. The dollar softened 0.4%, and stock futures advanced, with Nasdaq up 0.9%. This rebound counters recent $19 billion liquidation fears, with RSI at 58 signaling momentum.

BTC Gain: +2.5% to $113,200; volume $55B+.
ETH Climb: +3.1% to $4,020; 24H volume $45B.
Market Cap: $3.85T (+1.5%); fear index at 42.

Trade Framework Details: Tariff Pause and Export Relief

The agreement suspends retaliatory tariffs on U.S. agricultural imports and eases China’s rare-earth controls, with soybeans and shipping fees key wins. Trump called it a “massive victory,” while Xi emphasized “dialogue over confrontation.” Negotiators Bessent and Greer hailed the “successful framework,” pending approvals. This truce, a 90-day pause on new measures, reduces 100% tariff threats, stabilizing supply chains.

Implications for Crypto: Liquidity Boost and Rebound

The deal addresses volatility drivers, with 97% odds of a Fed rate cut adding tailwinds. Bitcoin’s 0.9 gold correlation weakens to 0.19, signaling decoupling. Analysts see $115K-$120K BTC rebound, with ETF inflows $477M yesterday fueling optimism.

2025 Bitcoin Price Prediction: $130K-$200K Consensus

Bitcoin price prediction for 2025 is bullish, targeting $130K-$200K by year-end. Changelly forecasts $123,849; CoinDCX $131,500. VanEck eyes $180K-$200K on ETF momentum. For investors, how to buy Bitcoin via compliant platforms ensures entry. How to sell Bitcoin and how to cash out Bitcoin offer liquidity. Sell Bitcoin for cash and convert Bitcoin to cash enable fiat conversions.

Trading Strategy: Momentum Longs with Stops

Short-term: Long above $113,000 targeting $118,000, stops at $110,000 (2.6% risk). Swing: Accumulate dips, staking for 5% APY. Watch $115,000 breakout; below $110,000, exit.

In summary, US-China trade truce sparks Bitcoin’s $113K rebound, with liquidity tailwinds fueling a 2025 surge to $130K-$200K.

BTC-3.58%

ETH-5.48%

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.