Since taking office, President Donald Trump has been destabilizing global markets, particularly with his aggressive trade policies. However, an agreement appears to have been reached with China, raising the prospect of a potential bullish turnaround for cryptocurrencies.

Preliminary Consensus Between the United States and China

It’s hard to ignore the trade tensions between the United States and China following the cryptocurrency market crash triggered on October 11 by President Donald Trump’s announcement of a 100% tariff on Chinese imports. But the situation could very well be about to reverse, following the recent announcement of a “preliminary consensus on several key trade issues” in this matter.

In fact, Donald Trump is currently in Asia on a regional tour that begins in the Malaysian capital of Kuala Lumpur. This is an opportunity to strike a few “deals” with China, Malaysia, and Vietnam, accompanied by a reduction in the tariffs imposed on these countries.

This détente was confirmed by U.S. Treasury Secretary Scott Bessent, with the key point being the postponement—presented as long-term—of China’s threatened restrictions on its rare earth exports. However, China’s chief trade negotiator, Li Chenggang, offered a more nuanced statement.

The U.S. position has been firm. We have held very intensive consultations and engaged in constructive discussions to explore solutions and measures to address these concerns.

Li Chenggang

As a result, Asian markets are starting the week on an upswing. The Nikkei 225 index on the Tokyo Stock Exchange, for example, has just surpassed the symbolic 50,000-point mark for the very first time in its history, following a 2.5% surge over the past 24 hours.

The Nikkei 225 index surpasses the symbolic 50,000-point mark

Is Bitcoin Heading Toward a New High?

This agreement—described as still fragile on China’s side—between the world’s two largest economic powers—accounting for 40% of global GDP—opens up new, more favorable prospects for global markets as the year comes to a close. In Europe, analysts are already anticipating a bullish start to the week.

This offers hope for confirmation of the bullish trend initiated by the BTC price since its rebound from the $106,000 support level. Here’s hoping that the specter of $100,000—recently described as “inevitable” by Standard Chartered analysts—is banished for good.

BTC price climbs back above $115,000

This bullish momentum could well be bolstered by another positive development: the prospect of another 25-basis-point interest rate cut by the U.S. Federal Reserve, which currently has a probability of over 96% according to the FedWatch tool. Stay tuned in the coming days…