Bitcoin (BTC) surged to $113,500 on October 26 after the United States and China unveiled an initial trade agreement to prevent 100% tariffs, fueling positive sentiment across global markets, as reported by a
Beincrypto report
. This development, achieved after two days of discussions in Kuala Lumpur, according to Beincrypto, comes after months of rising friction, such as Beijing’s rare earth export measures and tariff threats from Trump, as detailed in a
Times of India report
. The arrangement—which involves suspending tariffs and halting China’s rare earth restrictions, per a
TheStreet article
—pushed the total cryptocurrency market value to $3.92 trillion, with
Bitcoin
holding a dominance of about 57.7%, the article noted.
U.S. Treasury Secretary Scott Bessent called the deal a "very substantial framework" for stabilizing trade ties, according to TheStreet, while Chinese Vice Premier He Lifeng highlighted the "mutual benefit and win-win results" in the same coverage. The negotiations, which coincided with Trump’s ASEAN visit and were spotlighted by Beincrypto, come ahead of a scheduled meeting between
Trump
and China’s President Xi Jinping in South Korea to finalize the agreement, as reported by
TRT World report
.
The crypto market’s rebound followed a steep decline caused by Trump’s October 10 tariff announcement, which wiped out $200 billion from the sector within hours, according to Beincrypto. Bitcoin’s climb back to $113,500 represented a 1.8% increase, while
Ethereum
(ETH) moved past $4,040 and
Solana
(SOL) advanced 2.49% to $198, the same report stated. Analysts linked the rally to easing geopolitical risks and hopes for better liquidity, consistent with a
Coindoo analysis
.
Trade friction escalated after the U.S. initiated a Section 301 investigation into China’s adherence to the 2020 trade pact, as outlined in an
Economic Times report
, leading Beijing to enforce rare earth export limits, as noted by the Times of India. Trump’s threat of 100% tariffs, set for November 1, had heightened fears of a trade conflict, according to
InvestingLive
, but the new framework points to a possible easing of tensions, Beincrypto observed.
The result of these developments may influence Bitcoin’s path in the last quarter of 2025. Galaxy Digital’s Mike Novogratz warned that “planets would need to align” for
BTC
to hit $250,000, as mentioned in a
Bitzo piece
, but historically, reduced trade tensions have encouraged risk-taking and supported cryptocurrencies, according to Coindoo’s analysis. Still, experts caution that if negotiations break down, volatility could return, and Bitcoin may come under renewed selling pressure as investors turn to safer assets, the same Coindoo coverage noted.
With the Trump-Xi summit drawing near, markets remain cautious. A finalized agreement could spark wider economic confidence, while a collapse might revive concerns about inflation and global instability—situations that have often reinforced Bitcoin’s reputation as a store of value, as discussed in the Coindoo analysis.