The crypto markets are buzzing with optimism following a significant development in international trade negotiations. On October 26, 2025, US Treasury Secretary Scott Bessent announced that the United States and China have reached a “substantial” trade framework after two days of discussions in Kuala Lumpur, Malaysia.
This pivotal agreement is expected to prevent the imposition of 100% additional tariffs that President Trump previously threatened to enact on November 1. Bessent remarked that the potential tariff threats created a unique leverage during negotiations, leading to a pathway for further discussions on various trade matters.
Bessent elaborated that the framework allows for dialogue beyond just immediate tariff concerns, indicating a shift from previous hardline rhetoric. This change was needed to address the escalating tensions between the world’s two largest economies.
Chinese Vice Premier He Lifeng echoed this sentiment, emphasizing mutual benefits and win-win outcomes as the foundation of the countries’ relationship. He urged both nations to address shared concerns to safeguard the progress made during ongoing consultations.
Crypto Markets React Positively
The positive news from the trade talks sent ripples through the crypto space, with Bitcoin surging above $115,000, reflecting a 1.8% gain, while Ethereum rose 3.6%, crossing the $4,200 mark, and Solana increased by 3.7%. The total global crypto market capitalization also saw a boost, climbing approximately 1.9% to around $3.92 trillion. Bitcoin dominance remains sturdy at approximately 57.7%, with Ethereum securing about 12.5% of the market share.
Throughout 2025, the crypto markets have proven susceptible to developments in US-China trade relations. Just days before this agreement, Trump’s announcement of the potential for 100% tariffs sent cryptocurrency prices tumbling, with some assets losing nearly 99% of their value in a single day. The volatile nature of crypto appears closely tied to the potential fallout from international trade disputes.
Industry analysts are hopeful about the implications of the agreement. Jeff Park, a noted advisor at Bitwise, suggested that this favorable trade news could propel Bitcoin and gold toward new all-time highs. Furthermore, investor and analyst Anthony Pompliano indicated that if the agreement is confirmed and the Federal Reserve responds by cutting interest rates, asset prices could witness a significant surge.
Key Agreements in Six Areas
The discussions culminated in basic agreements concerning six critical trade areas that have historically caused friction. These areas include tariffs on China’s maritime, logistics, and shipbuilding sectors, an extension of the suspension of reciprocal tariffs, and measures relating to fentanyl.
Additionally, the framework suggests a potential increase in US agricultural exports to China and addresses export controls—key components of the negotiation. As the two nations move forward, specifics will be worked out through domestic approval processes, maintaining a dialogue to ensure healthy, stable, and sustainable relations.
The upcoming meeting between President Trump and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit on October 31 is anticipated to further solidify the progress made. With both nations signaling a commitment to communication, the crypto markets will be watching closely for any developments.
This trade agreement stands as a beacon of hope in a turbulent economic landscape, demonstrating how international relations can dramatically impact the world of cryptocurrencies and beyond.
