Bitcoin stabilizes amid potential US-China trade truce

The cryptocurrency market is recovering from one of the largest liquidations of nearly $19 billion last week. On Monday, Bitcoin rose to $115,100 and briefly reached $116,400, setting a new two-week high. Signs of easing trade tensions between the US and China and expectations of the Federal Reserve's key interest rate decision fueled the bullish trend.

Investor sentiment has improved significantly following reports of preliminary tariff agreements between Washington and Beijing. As early as Thursday, US President Donald Trump and Chinese President Xi Jinping are scheduled to meet, which could be a step toward resolving the highly complex relationship between the world's largest economies.

SynFutures co-founder and COO Wennie Cai noted that positive signals about potential negotiations have boosted investor confidence. She added that the hope for a compromise has increased interest in risky assets, including cryptocurrencies.

Optimism was also fueled by Trump's statements expressing confidence in reaching a deal. Amid these expectations, Bitcoin surpassed the important $114,000 level, which is considered psychologically significant for short-term holders.

This is the first time this has happened since mid-October, when the market fell sharply following the threat of new US tariffs. Analysts believe that stabilization of the price above this level could signal the development of a strong upward trend.

On Friday, October 10, Trump announced his intention to impose a 100% tariff on Chinese goods starting November 1 if the parties fail to reach an agreement. Following this, the crypto market experienced its largest liquidation in the past year, with Bitcoin plummeting to $104,000. Currently, cryptocurrencies are receiving additional support from expectations that the Federal Reserve may cut its key refinancing rate this month.

Source: cryptonews.net

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