On October 26, 2025, Bitcoin soared above $115,000, reaching its highest price in almost two weeks. This surge followed encouraging developments in U.S.-China trade talks, which eased concerns about a fresh tariff conflict and sparked a rally throughout the cryptocurrency sector. The leading digital asset recovered from recent sharp declines, with $370 million in short positions being liquidated within a day of the trade breakthrough, according to Coinglass data cited by
During two days of negotiations in Malaysia, the U.S. and China reached a "preliminary consensus" on major trade matters, such as export controls, fentanyl regulations, and shipping tariffs. U.S. Treasury Secretary Scott Bessent announced that President Donald Trump’s proposed 100% tariffs on Chinese imports were "essentially off the table," while Chinese Vice Premier He Lifeng highlighted the "mutual benefit and win-win outcomes" for both countries, according to
The improvement in U.S.-China trade relations coincided with a broader upswing in markets, as both U.S. and Asian stock futures climbed and gold retreated from its record highs. Analysts attributed the crypto market’s rebound to a reduction in geopolitical risks, with institutional investors returning to riskier assets after a period of caution. "The softening of trade rhetoric has given traders some breathing space," one analyst observed, adding that the Federal Reserve’s upcoming policy meeting could further impact Bitcoin’s direction, a point also noted by Coindesk.
Ethereum and other altcoins continued to climb as traders anticipated a quick resolution to tariff concerns.
Scott Bessent, the U.S. Treasury Secretary, described the Malaysia talks as establishing a "very substantial framework" that could prevent a 100% tariff hike and pause China’s restrictions on rare-earth exports. The agreement, expected to be finalized at an in-person meeting between Trump and Xi during the APEC summit on October 31, marks a shift from previous tough stances, including Trump’s earlier threats of 500% tariffs, TheStreet reported.
Industry experts and crypto analysts responded positively to the trade progress. Jeff Park from Bitwise suggested that both Bitcoin and gold could reach new record highs if the U.S.-China agreement is confirmed and the Federal Reserve lowers interest rates. Crypto analyst Anthony Pompliano cautioned that volatility could increase as markets respond to the intersection of trade news and central bank decisions, according to
The upcoming Trump-Xi summit in South Korea is a major event to watch, with Coinotag estimating a 93% likelihood of it taking place, according to