- President Trump confirms a meeting with Xi Jinping at the APEC summit, signaling a potential easing of US-China trade tensions.
- The announcement led to a positive rally in crypto markets, with Bitcoin and leading altcoins recording gains.
- The crypto market’s recent downturn was intensified by prior trade war rhetoric and escalating tariffs involving the US and China.
- Market sentiment shifted from extreme fear to cautious optimism following the news of diplomatic engagement.
President Donald Trump confirmed on Sunday that he will meet with Chinese President Xi Jinping during the upcoming Asia-Pacific Economic Cooperation (APEC) summit in Seoul, scheduled to commence on October 31. This confirmation marks a significant step towards de-escalating the long-standing trade disputes that have rattled global markets, including the cryptocurrency sector. Trumpโs remarks followed reports of a slowdown in trade tensions, sparking hope for a more stable economic relationship between the two superpowers.
โ[Xi Jinping] is a very strong leader, a very amazing man. You can look at what he’s done, where he is in his life. It is an amazing story. It’s a story for a great movie. I think we’re gonna be fine with China, but we have to have a fair deal. It’s going to be fair,โ Trump stated during an interview with Fox News’ Maria Bartiromo.
Previously, Trump had indicated that there was โno reasonโ to meet with Xi Jinping at the summit, which was immediately followed by the announcement of additional tariffs on China. These trade measures triggered significant declines across crypto markets, with some altcoins losing up to 99% of their value amid heightened volatility and liquidity concerns. The escalation of trade rhetoric had previously cast a shadow over the broader financial and digital asset markets, intensifying fears of prolonged economic conflict.
The cryptocurrency sector responded positively to the news of potential rapprochement. Bitcoin (BTC) experienced a 2% increase on Sunday, capturing a broader market rally. Major altcoins such as Ether (ETH) and Binance Coin (BNB) each rose approximately 3.5%, with Solana (SOL) climbing nearly 4%, according to TradingViewโs real-time data.
Despite the optimistic market response, trader sentiment remains cautious. The Crypto Fear and Greed Index plummeted to a six-month low of 22 last Friday, reflecting โExtreme Fearโ and widespread investor uncertainty amid ongoing geopolitical risks. This decline followed a historic crypto market crash triggered by fears of a protracted US-China trade war and aggressive tariffs.
Nevertheless, analysts from the Kobeissi Letter have suggested that the latest downturn may be short-lived, attributing it to technical corrections rather than a fundamental breakdown of the long-term bullish trend in cryptocurrencies. Experts emphasize that, despite recent volatility, the underlying market momentum remains favorable for sustained growth in the digital assets space. This delicate balance highlights the interconnectedness of geopolitical developments and the evolving landscape of crypto regulation, markets, and investor confidence.
