Bitcoin Surges Past $113K on US-China Trade Deal Hopes

The unexpected Sunday surge in Bitcoin’s price, which saw the cryptocurrency break through $112,000 and $113,000 barriers before reaching nearly $113,500, came directly from positive developments in the tense US-China trade relationship. US Treasury Secretary Bessent revealed that after two days of negotiations, China appeared ready to make a deal that would eliminate the 100% tariff imposed by President Trump. This announcement marked a significant reversal from the market turmoil that followed Trump’s October 10th declaration that China had been deceitful in sensitive economic areas, prompting his threat of severe tariffs set to become official on November 1st.

According to The Kobeissi Letter, which first reported the development, this breakthrough represents the tenth and final step of Trump’s tariff plan, which included announcing a new deal and subsequent financial market surge. The timing proved particularly favorable for cryptocurrency markets, as traditional stock and commodity exchanges were closed for the weekend, leaving digital assets as the primary venue for investors to react to the positive trade news. The Reuters news organization had earlier reported that President Trump expressed confidence about striking a deal with Chinese President Xi Jinping, noting that top economic officials had reached preliminary consensus in their talks.

Bitcoin’s dramatic Sunday recovery stands in stark contrast to its performance following Trump’s original tariff announcement on October 10th. During what market participants described as an ‘October 10 massacre,’ Bitcoin plunged hard, dropping to as low as $101,000 on some exchanges as traders reacted to the potential economic disruption from the proposed 100% tariffs. The sharp decline reflected broader market concerns about how such aggressive trade measures could impact global economic stability and risk assets.

The current rally, pushing Bitcoin to multi-day peaks above $113,000, demonstrates how quickly cryptocurrency markets can reverse course based on geopolitical developments. The asset’s ability to recover approximately $12,500 from its October lows highlights the sensitivity of digital assets to traditional financial and political news, despite their reputation as alternative investments. The BTCUSD trading pair showed clear momentum as breaking news about the potential trade deal circulated through financial media and social platforms.

The scheduled meeting between US and Chinese leaders in Europe this week provided additional context for the market’s optimistic reaction. With both countries’ delegations having met on multiple occasions to discuss terms, the groundwork appeared to be laid for a more comprehensive resolution to the trade tensions that had been weighing on global markets throughout October.

The timing of the trade breakthrough provided a unique opportunity for cryptocurrency markets to demonstrate their 24/7 trading capability. While traditional financial markets including stocks, bonds, and commodities were closed for the weekend, the crypto industry became the sole beneficiary of the positive developments. This scenario underscores one of digital assets’ fundamental advantages: their ability to react immediately to news and market-moving events regardless of time or day.

Bitcoin’s leadership role in the crypto market was evident as it rocketed to nearly $113,500, breaking through multiple psychological resistance levels in a single trading session. The surge represented one of the most significant Sunday moves in recent memory, highlighting how geopolitical developments increasingly influence cryptocurrency valuations. As reported by CryptoPotato, the asset’s performance reflected not just technical trading patterns but fundamental shifts in global economic expectations.

The market reaction also demonstrated the growing integration between traditional finance and cryptocurrency markets. What began as a niche asset class has evolved into a market that responds to the same macroeconomic signals and geopolitical developments that move stocks, currencies, and commodities. The immediate price movement following Secretary Bessent’s comments shows that cryptocurrency traders are closely monitoring traditional financial news and policy developments, particularly those involving major economic powers like the United States and China.