United States Treasury Secretary Scott Besant said on Sunday that the United States and China have made “substantial” progress on the framework for a trade deal, giving investors hope for a revival in the bull market.
Besant said the proposed trade framework would likely remove the need for the 100% additional tariffs announced by US President Donald Trump on October 10. he adds:
“President Trump gave me a huge negotiating leverage with the threat of 100% tariffs on November 1, and I believe we have reached a very important framework that will avoid this and allow us to discuss many other things with the Chinese.”
Besant’s comments come after several weeks of de-escalation in trade tensions between the two countries, culminating in President Trump’s confirmation of a meeting with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit on October 31.
President Trump had earlier said there was “no reason” to meet with representatives of China, leading investors to fear a new protracted trade war between the two countries.
Crypto investors, traders and industry executives celebrated the news of the trade framework and the growing possibility of a deal between the US and China, as crypto markets experienced a modest rally on the news of a positive trade deal.
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Crypto markets surge as traders and investors celebrate trading framework
Crypto markets are sensitive to trade war developments, rising when the news is positive and falling when trade tensions escalate or global trade is disrupted.
President Trump’s social media post on October 11, announcing additional 100% tariffs on China, sent the crypto market into recession, causing some crypto tokens to lose up to 99% of their value in 24 hours.
Bitcoin (BTC) rose a modest 1.8%, Ether (ETH) rose 3.6% and SOL (SOL) rose 3.7% following Besant’s announcement on Sunday.
Jeff Park, an advisor at investment firm Bitwise, said news of a positive trade deal would push BTC and gold to new all-time highs.
Investor and analyst Anthony Pompliano also said, “Asset prices will rise this week if the US-China trade deal is announced and the Fed cuts interest rates. Buckle up.”
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