Bitcoin News Update: U.S. and China Reach Trade Agreement, Preventing Tariff Increase and Calming Global Market Concerns

The United States and China have come to a tentative arrangement to prevent a planned 100% tariff increase on Chinese imports and to put a hold on rare earth export limits, providing immediate relief to international markets and supply chains. The agreement, reached during talks in Malaysia, postpones China’s rare earth restrictions for a year and resumes U.S. soybean imports, reducing strain on American companies such as

and , according to a . Treasury Secretary Scott Bessent described the deal as progress toward stabilizing trade relations before a possible meeting between President Donald Trump and Chinese President Xi Jinping at the APEC summit, the Bitget report stated.

This trade pause extends a temporary halt that was due to end on November 10, preventing a significant rise in tensions. The U.S. has agreed to drop "fentanyl tariffs" and freeze reciprocal tariffs on Chinese products, while China will temporarily stop its export controls and countermeasures against U.S. actions, as reported by

. Vice Premier He Lifeng stressed the need for "equality, respect, and mutual benefit" in resolving conflicts, urging ongoing talks to tackle broader economic issues, according to the .

The timing of this pact is crucial, as both countries are under internal political pressure. For the U.S., the agreement lessens the impact of Trump’s threatened tariffs, which had unsettled financial markets. In China, pausing rare earth export limits—which are vital for American technology and defense industries—prevents immediate disruptions to supply chains. However, experts warn that lasting progress will depend on resolving deeper issues, such as the detention of Hong Kong media figure Jimmy Lai and ongoing disputes over export controls, the Bitget report cautioned.

At the same time, the cryptocurrency sector responded to the trade news with mixed reactions. A $11 billion

whale initiated a $235 million short position with 10x leverage at $111,190, risking $2.6 million in losses if Bitcoin climbs to $112,368. This investor shifted $5 billion into and then re-entered Bitcoin shorts, reflecting caution about the macroeconomic outlook amid tariff and U.S. government shutdown concerns, according to Bitget. The move led to $600 million in liquidations, with Bitcoin making up more than half of the losses.

Bitcoin’s value increased by 1.8% to $68,500 as the trade deal boosted demand for safe-haven assets, Bitget’s analysis observed. Institutional faith in Bitcoin remains high, with MicroStrategy holding $72 billion worth and technical indicators like MVRV ratios pointing to long-term bullishness. Analysts are split, with some predicting a downturn and others seeing market swings as buying opportunities.

The trade pact has also revived conversations about wider economic collaboration. Sean Stein, President of the U.S.-China Business Council, encouraged both nations to prolong the tariff truce and prioritize sustained cooperation, highlighting their status as the world’s two largest economies, the Asian News Network reported. Former Treasury Secretary Robert E. Rubin supported an open trade system and stressed the advantages of joint work in AI and technological innovation, that outlet added.

For now, the agreement brings a measure of stability to the markets, but unresolved issues remain. With a Trump-Xi meeting on the horizon and global supply chains still vulnerable, the ultimate success of this arrangement will depend on continued commitment and the ability to manage complex geopolitical dynamics, the Bitget report concluded.