Bitcoin Surges Past $114K as US-China Trade Tensions Ease

Friday’s cryptocurrency market crash, which saw more than $19 billion in value wiped out in less than a day, now appears to have been triggered by what analysts are calling ‘one big misunderstanding’ between US President Donald Trump and Chinese President Xi Jinping. According to analysis from The Kobeissi Letter, the market turmoil began when the United States misinterpreted news about China’s rare earth export controls, announced on October 9th at approximately 8:30 am ET. This came 26 hours before President Trump’s tariff announcement, creating a cascade of misinterpreted economic signals.

The critical turning point came when Beijing clarified that the new controls did not represent a full export ban, stating that applications meeting regulations would be approved. This clarification fundamentally changed the market’s perception of the situation. Analysts noted that ‘amid the market’s downturn on Friday, our view was that the 100% tariff announcement by Trump was a bargaining chip,’ and after China’s statement, they concluded that ‘the odds of Trump’s 100% tariff on China going into effect are extremely low.’ This reassessment transformed market sentiment from panic to relief.

The cryptocurrency market awakening began Sunday afternoon as Bitcoin jumped several thousand dollars to well over $114,000. Earlier in the day, BTC had stood below $112,000, but shot up by over two grand to tap $114,500 before settling slightly lower. The remarkable recovery represented a gain of over ten thousand dollars from the recent low marked on Saturday morning, demonstrating the market’s rapid reassessment of the geopolitical situation.

Ethereum and most altcoins followed Bitcoin’s lead with impressive gains. ETH surged to almost $4,100, representing a significant 6% spike that positioned it as a market leader. BNB rocketed by more than 12% daily to trade close to $1,300, while other major gainers included MNT with a 25% surge, TAO up 18%, ASTER gaining 16%, and PENGU increasing by 10%. The broad-based recovery across multiple cryptocurrency tags indicated a restoration of market confidence rather than isolated speculative activity.

The catalyst behind Sunday’s dramatic market jump came from political channels, specifically comments from US Vice President JD Vance that continued the de-escalation narrative. Vance emphasized that the Trump administration appreciated the ‘friendship between Trump and Xi’ and added that President Trump hopes the United States ‘won’t need to use leverage on China.’ These remarks signaled a willingness to negotiate rather than confront, directly addressing market concerns about escalating trade tensions.

Vance’s statement that Trump is ‘willing to be a reasonable negotiator with China’ provided the market certainty it had been lacking since Friday’s tariff announcement. The combination of China’s clarification about their export controls not being a full ban and the United States’ expressed willingness to negotiate created the perfect conditions for a market rebound. This political de-escalation between the two economic superpowers removed the primary fear that had driven the massive liquidation event, allowing investors to refocus on fundamental cryptocurrency values rather than geopolitical risks.