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- Trump confirms meeting with Xi at the APEC summit, fueling hopes for a US-China trade deal.
- The crypto market rebounds as Trump’s positive remarks ease fears of a prolonged trade war.
- Analysts expect a short-lived market downturn, predicting a long-term bullish trend in crypto.
US President Donald Trump on Sunday announced his intention to meet with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) meeting in Seoul, South Korea, which will commence on October 31, in an interview with Maria Bartiromo of Fox News. This news is positive following the de-escalation of US-China trade tensions, which has created an expectation of a potential trade agreement that can positively impact the cryptocurrency market.
Trump has applauded Xi, describing him as a very strong leader and a wonderful man. You can see what he has done and where he is in his life, he said. It’s an amazing story. Trump was optimistic about solving the trade problems, citing that there had to be a reasonable deal. This is a sharp contrast to past declarations where he had ruled out the possibility of a meeting with Xi and declared the imposition of further tariffs on China.
Source: Fox News
Trump’s Optimism Sparks Crypto Rebound After Tariff Crisis
The news of new tariffs had already led to a large-scale crash in the prices of cryptocurrencies. The announcement resulted in one of the biggest liquidation incidents in cryptocurrency history, liquidating market valuables worth around $20 billion. Such a steep drop was driven by excessive leverage, lack of liquidity, and panic by investors, which contributed to a crypto meltdown.
The crypto markets, however, rebounded after Trump made recent remarks. At the time of writing, Bitcoin was up by approximately 1.55%, whereas Ether gained 2.60%, and BNB gained 2.27%. The SOL token of Solana rose by 0.99%, as per TradingView. The rally indicates that there is an improvement in investor sentiment because of the possibility of a calming down of the US-China trade tension.
Source: TradingView
Also Read: Ethereum Trust: Huobi founder leads $1B institutional trust to expand ETH holdings: Report
Crypto Market Hits Low, Analysts Predict Quick Recovery
Before this, the cryptocurrency market had been plunging to a six-month low due to the fears of a potential long trade war. The Crypto Fear and Greed Index was at 29, which meant that the investors were extremely scared and overly cautious. Market participants were now more concerned about how the trade war could affect the economies and digital assets of the world.
Analysts believe that the market will recover despite the recent volatility in the market. One of the largest crypto analysis firms, Kobeissi Letter, contends that there is a high probability that the drop will be temporary. The company blames the market downturn on technical reasons, and the long-run bullish trend is not over.
However, the upcoming meeting between Trump and Xi and the positive remarks made by Trump regarding the trade have caused new hopes. The successful trade negotiations would, in any case, become a great boost to the cryptocurrency market, which would continue to grow in the months ahead.
Also Read: Tether Unveils Open-Source WDK to Power the Next Generation of AI and Crypto Wallets
