Due to the easing of tensions between the US and China, the cryptocurrency market is experiencing a significant rally. Market resilience suggests the looming nightmare of another tariff war is receding.
The focus now shifts to the high-stakes diplomatic and economic meetings that will take place throughout this week, primarily the APEC summit in South Korea.
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The United States and China signaled they are nearing completion of a framework agreement on key trade issues, following working-level talks that concluded in Kuala Lumpur, Malaysia, on Sunday.
The two countries are considering postponing by one year restrictions on China’s exports of rare earth materials, which have been the biggest point of recent friction. In return, the US is expected to postpone the imposition of threatened 100% tariffs on Chinese goods.
China also agreed to increase imports of U.S. soybeans and agricultural products. In return, the United States promised to ease certain export restrictions and review adjustments to port fees imposed on China.
Bitcoin prices immediately rose by about 2% on the news. As of 14:00 (UTC) on Sunday, it was trading at $113,450, up 1.62% from the previous day.
The market reacted quickly to this news. This confirms the sense of relief that the threat of 100% tariffs, which had been a major constraint on asset prices, has been resolved. Altcoins that had lagged due to geopolitical uncertainty, such as HYPE (+6.67%) and WLFI (+7.33%), also soared.
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As a result, Bitcoin rose 6.07% over the past week, reclaiming the $113,000 level, with altcoins quickly following suit. According to data from CoinGecko, Ethereum (ETH) rose 4.52%, while Solana (SOL) rose 4.52%.It was 5.94%.
Whales increase in response to changes in emotion
Sentiment between the US and China has changed rapidly. Last Thursday, US Treasury Secretary Scott Bessent discussed additional software export controls as a potential retaliatory measure.
However, on-chain data from Santiment’s on-chain analytics platform suggests that large crypto investors quickly anticipated the diplomatic change and entered buy-on-the-trend positions. In recent days, more than 218,000 ETH, or nearly $870 million, has been added to wallets holding between 100 and 10,000 ETH.
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This represents about one-sixth of the amount sold by these whales during the previous market decline and shows solid new confidence.
Positive news flow returns to the forefront
Positive developments in the industry, which had been overshadowed by geopolitical turmoil, are once again in the spotlight. The news that REX-Osprey XRPR, the first spot XRP ETF in the US market, has surpassed $100 million in total assets under management within a month has raised expectations for future altcoin spot ETF approval. XRP responded with a weekly gain of 11.22%.
Additionally, a key development was JPMorgan’s announcement that institutional investors can use BTC and ETH as loan collateral. The move is seen as the final step in the adoption of digital assets by Wall Street’s most traditional banks.
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This week’s schedule: FOMC and summit meeting
Despite the upbeat mood, the most important economic and diplomatic events are still yet to come. Markets are facing a convergence of the US Federal Reserve’s FOMC meeting and the APEC summit this week.
The most important dates are Wednesday and Thursday (UST). The Fed’s October interest rate decision and Chairman Jerome Powell’s press conference are scheduled for Wednesday at 6pm UTC. While a 0.25% rate cut is widely expected, market attention will be focused on the possibility that the Fed will announce an end to quantitative tightening (QT).
The most important diplomatic event will take place on Thursday, a face-to-face summit between US President Donald Trump and Chinese President Xi Jinping. Issues such as the TikTok acquisition, exports of fentanyl precursors, and U.S. semiconductor export restrictions will be discussed.
Finally, this week will see a slew of earnings reports from major U.S. companies, with approximately 20% of S&P 500 companies reporting their results. The earnings announcements of Apple (AAPL) and Amazon (AMZN) to be announced on Thursday at 21:00 UTC are particularly important. Given recent correlations, a significant decline in US tech stocks could have a negative impact on Bitcoin prices.
