Bitcoin News Update: Unstable US-China Trade Truce Triggers Rally in Bitcoin and Equities

This week, Bitcoin and global stock markets experienced notable gains as renewed optimism for a U.S.-China trade agreement improved investor confidence. Analysts pointed to a delicate yet meaningful change in geopolitical risk factors. The cryptocurrency sector, which had previously been shaken by volatility from tariff threats, saw

(BTC) surpass $113,000, while U.S. equity futures and stock funds attracted significant capital inflows. The upward momentum followed initial trade framework deals reached during weekend talks in Malaysia, ahead of a crucial meeting between President Donald and Chinese President Xi Jinping scheduled for October 30, as reported by .

The U.S. Treasury announced that negotiators had established a "very substantial framework" to prevent the implementation of 100% tariffs on Chinese imports and to delay China's restrictions on rare-earth exports. Treasury Secretary Scott Bessent highlighted that this agreement would "protect" the progress made in previous trade discussions and pave the way for further talks on agricultural trade and fentanyl enforcement, according to TheStreet. Chinese Vice Premier He Lifeng also described the deal as a "win-win" for both countries, TheStreet reported.

Digital currencies reacted quickly to these developments. Bitcoin rebounded from a post-tariff low near $100,000 to above $113,000, pushing the total crypto market capitalization to $3.92 trillion.

(ETH) along with altcoins such as (SOL) and also recorded gains, signaling a broader appetite for risk. Analysts attributed this surge to diminished concerns over global supply chain disruptions, a major issue for crypto markets, as noted in a .

Stock markets reflected this positive sentiment as well. During the week ending October 22, global equity funds saw net inflows of $11.03 billion—the largest three-week increase since early October—as investors anticipated reduced trade friction. U.S. equity funds received $9.65 billion in net inflows, reversing two weeks of withdrawals, while Asian funds gained $2.81 billion. Technology funds, which had been under pressure due to trade uncertainties, attracted $2.92 billion, according to

.

The easing of trade tensions also reignited discussions about Bitcoin’s future direction. Some strategists, including Dan Ives from Wedbush, described the framework as "a major breakthrough" for technology stocks and the AI industry, both of which have faced challenges from export controls and rare-earth limitations. "This removes a persistent cloud over the market," Ives commented, suggesting that a comprehensive trade agreement could spark a wider economic rebound, as reported by

.

Despite the optimism, experts warn that the deal is still unstable. The upcoming Trump-Xi summit in South Korea is viewed as a crucial moment, with both leaders facing domestic expectations for concrete outcomes. Should talks break down, volatility could return, as demonstrated when Trump’s October 10 tariff announcement led to a $200 billion drop in the crypto market, according to Yahoo Finance.

Bitcoin’s technical indicators present a mixed picture. While the price has held above important Fibonacci levels and on-chain data points to renewed accumulation, analysts caution that a fall below $100,000 could trigger another wave of selling. "The market remains in a narrow trading band, and sentiment could quickly change if trade worries resurface," one strategist told

.

As the Federal Reserve approaches its next policy decision, investors are considering whether continued accommodative monetary policy and ongoing trade progress could propel Bitcoin to new record highs. For now, the market seems to be betting on the persistence of the fragile truce, with both digital assets and traditional markets showing early signs of relief.