Global cryptocurrency markets are showing signs of stabilization, buoyed by a perceived de-escalation in U.S.-China trade rhetoric and growing expectations of an imminent interest rate cut by the U.S. Federal Reserve.
Bitcoin, the world’s largest cryptocurrency, is now trading around USD $111,000. This follows a period of intense volatility that saw its price fluctuate significantly.
U.S. President Donald Trump has adopted a more conciliatory tone regarding ongoing trade disputes with China. “I am not looking to destroy China,” Trump stated on Sunday.
This marks a notable shift from his previous threat of a 100% tariff on Chinese goods. That earlier warning had caused substantial turbulence across cryptocurrency markets.
The tariff threat contributed to a crash that saw Bitcoin plummet from a recent high of USD $126,000. The broader crypto market experienced over USD $19 billion in liquidations during this period.
Trump further moderated his position on Sunday, suggesting a potential 100% tariff, previously scheduled for November 1, “is not sustainable.” He added that it “could hold,” indicating continued flexibility.
The softened rhetoric precedes an anticipated meeting between President Trump and Chinese President Xi Jinping. This is slated for next week at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea. Further U.S.-China discussions are also expected this week in Malaysia.
Adding to market relief are strong expectations that the U.S. Federal Reserve will cut interest rates before the end of October. This anticipation is improving global risk sentiment.
Such a move by the Fed typically favors volatile assets like cryptocurrencies. It encourages investors to rotate capital into riskier holdings.
The total cryptocurrency market capitalization has collectively risen 1% to USD $3.83 trillion, indicating a modest but widespread recovery.
Bitcoin itself had recently approached USD $116,000 a week ago, only to fall below USD $105,000 on Friday. Its current price remains 12% lower than its October 6 peak, though it gained almost 2% in the last 24 hours.
Despite the current easing of tensions, several contentious issues persist on the U.S.-China agenda. These include disputes over rare earths, efforts to curb fentanyl exports, and China’s commitment to resuming soybean purchases.
China’s territorial ambitions regarding Taiwan also remain a significant point of discussion. A fragile trade truce between the two economic powers is set to expire on November 10.
Some analysts view the market’s current state as potentially entering a re-accumulation phase. They point to resilient institutional demand and an 8.4% increase in corporate Bitcoin holdings over the past 30 days as supporting factors.