Bitcoin Updates: Cryptocurrency Markets Surge Following U.S.-China Trade Ceasefire, Yet Uncertainty Surrounds the Delicate Agreement

This week, the United States and China established an initial trade agreement, alleviating concerns over global supply chains and fueling a surge in the cryptocurrency sector.

(BTC) jumped 3.5% to reach $115,235 over the weekend, while the total crypto market value climbed to $3.92 trillion, recovering from earlier losses this month when Trump's tariff threats erased $200 billion from the market, as per a . The agreement, revealed during Trump’s visit to Asia, involves China postponing restrictions on rare earth exports and agreeing to purchase U.S. soybeans, thereby avoiding 100% tariffs, Treasury Secretary Scott Bessent stated in a .

This easing of trade tensions has increased investor risk appetite, sending Bitcoin above $113,000 for the first time in ten days and

(ETH) rising past $4,253. Experts attribute these advances to diminished geopolitical risks and growing expectations of interest rate cuts by the Federal Reserve. "This agreement tackles a major threat to global supply chains, providing markets with greater certainty as the year ends," according to . Jeff Park from Bitwise believes Bitcoin could reach new highs if the trade deal is finalized and the Fed adopts a more accommodative stance, while Anthony Pompliano cautions that if both the agreement and rate cuts occur, volatility could increase, as noted in a .

However, the stability of the agreement is still uncertain. The upcoming Trump-Xi meeting in South Korea is seen as crucial, with analysts warning that a breakdown could bring renewed market instability, according to

. Blockchain data reveals mixed trends, as transaction activity has not yet matched the price rebound, signaling caution for short-term traders. At the same time, institutional investors are shifting funds, with U.S. Bitcoin ETFs attracting $446 million last week, led by BlackRock's IBIT, as also reported by Decrypt.

From a technical perspective, Bitcoin faces resistance at $117,600; surpassing this level could drive

toward $120,500. If it fails to break through, a retreat to $112,200 is possible. With the RSI at 55, there is still room for further gains, but the market is not yet overbought, according to CryptoRank.

These trade negotiations are also intertwined with larger economic trends. The Federal Reserve’s meeting on October 29 is approaching, with markets almost certain of a 25-basis-point rate cut. Easing tensions between the U.S. and China could further boost liquidity-driven rallies in risk assets, including cryptocurrencies. Nevertheless, Congress has cautioned Trump against loosening export restrictions on advanced AI chips such as Nvidia’s Blackwell, citing concerns over potential military use by China, as reported in

.

While optimism is growing, obstacles remain. The upcoming APEC summit in November will be a key test for the trade agreement’s resilience, and unresolved geopolitical issues—like China’s rare earth export policies—continue to pose risks. For now, traders are betting on continued stability, with Bitcoin holding above $113,500 and altcoins such as Hyperliquid (HYPE) jumping 14.6%, according to

.