Cryptocurrency markets experienced a significant upswing following confirmation that President Donald Trump will meet with Chinese President Xi Jinping on October 31. The meeting, scheduled to take place at the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea, has sparked renewed optimism among investors, reversing a recent downturn fueled by trade tensions between the two nations.
The price of Bitcoin (BTC) saw an increase of approximately 2% following Trump's announcement. This positive momentum rippled through the broader crypto market, with Ether (ETH) and BNB each recording gains of around 3.5%, while Solana's SOL token jumped by nearly 4%. This surge indicates a strong correlation between geopolitical developments and the performance of digital assets.
The planned meeting aims to address ongoing trade disputes and explore avenues for de-escalation between the U.S. and China. Treasury Secretary Scott Bessent confirmed that preparations are underway, with both sides maintaining open communication channels. This diplomatic engagement signals a potential shift away from recent trade hostilities that had negatively impacted the crypto market.
Previously, heightened trade tensions, including export restrictions on rare earth elements by China and threats of increased tariffs by the U.S., had sent shockwaves through the crypto market. Trump's earlier threats to impose additional tariffs on Chinese goods and even cancel the meeting with Xi Jinping triggered a massive sell-off, resulting in substantial liquidations in the crypto derivatives market. One such event led to nearly $20 billion in liquidations, marking one of the worst crypto liquidation events in history. Bitcoin briefly dipped below $110,000, and various altcoins experienced double-digit losses.
The confirmation of the October 31 summit has been welcomed by market analysts, who believe that a constructive dialogue between the two leaders could pave the way for a more stable economic environment. This anticipated stability has boosted investor confidence, leading to renewed buying activity in the crypto space. Some analysts suggest that the market is poised for a rebound, with potential for further gains if the U.S. and China can reach a mutually beneficial agreement.
However, some experts remain cautious, emphasizing that the meeting is not expected to yield a major breakthrough. The US-China presidential meeting would be the first in-person encounter between the leaders of the world's two largest economies since Trump returned to power in January. The situation remains fluid, and the crypto market's reaction will likely remain sensitive to any further developments or pronouncements related to the U.S.-China trade relationship.
