- Trump and Xi signed a one-year trade pact cutting U.S. tariffs on Chinese goods to 47%.
- Bitcoin rebounded to $110K after the deal as major altcoins gained over 1%.
- U.S. spot Bitcoin ETFs saw $471M in outflows despite improving market sentiment.
U.S. President Donald Trump’s recent meeting with Chinese President Xi Jinping resulted in a one-year trade agreement that eased market tensions and led to a rebound across the crypto market. The announcement followed discussions in South Korea during Trump’s Asia visit, which included stops in Japan and South Korea, and came after weeks of uncertainty surrounding renewed tariff disputes.
The United States and China signed a one-year trade agreement on Thursday, marking a key development in bilateral relations. President Trump described the meeting with President Xi as “amazing,” confirming the two leaders discussed tariffs, rare earth exports, and chip supply restrictions. Under the deal, the U.S. will immediately reduce the fentanyl-related tariff to 10%, lower the overall tariff rate on Chinese goods from 57% to 47%, and ease chip-export limits for companies including Nvidia.
The two-hour dialogue between the leaders also produced commitments for annual trade reviews and reciprocal visits, Trump to China and Xi to the United States, scheduled for April 2026. Both countries agreed to cooperate on mitigating geopolitical tensions, including issues related to the Russia-Ukraine conflict. Russian envoy Kirill Dmitriev separately told a Saudi investment conference that the war in Ukraine may conclude within a year.
Crypto Market Reaction
Bitcoin responded to the announcement, rebounding in a V-shaped recovery from under $108,000 to nearly $110,000 within hours. Ethereum, Solana, XRP, BNB, Dogecoin, and Cardano each rose by more than 1%, signaling improved sentiment across digital asset markets. Despite the surge, Bitcoin remains down 2% over the past 24 hours, trading near $110,250, with intraday levels fluctuating between $107,957 and $113,642.
Trading volume held steady, reflecting cautious participation despite macroeconomic uncertainty. Market observers attributed the reduced activity partly to recent transfers by SpaceX and comments from Federal Reserve Chair Jerome Powell, which had earlier dampened risk appetite.
ETF Outflows and Market Outlook
According to data from SoSoValue, U.S. spot Bitcoin ETFs registered $471 million in total net outflows, with Fidelity’s BTC fund leading at $164.4 million and BlackRock’s IBIT losing $88.1 million. Ethereum ETFs recorded $81.44 million in total outflows, except BlackRock’s ETHA, which saw slight inflows.
Analyst Ali Martinez noted that Bitcoin’s Sharpe Ratio, used to assess risk-adjusted returns, indicates a shift toward a lower-risk phase following a period of high risk. With tariff uncertainties easing and diplomatic progress between Washington and Beijing, analysts expect Bitcoin to revisit the $120,000 level in November if momentum continues.