Bitcoin’s price experienced a remarkable rally on Sunday, climbing to over $114,000. This surge was mirrored by significant gains in Ethereum and other altcoins as market sentiment shifted positively following the de-escalation of tensions between the United States and China.

Reports suggested that last Friday’s threats from President Trump may have been overstated, with indications that relations between Washington and Beijing are stabilizing. A key tweet from The Kobeissi Letter noted:

“Investors are waking up to some major news from China: The entire tariff crash on October 10th may have just been one big misunderstanding between Trump and Xi.”

This sentiment underscores that after an announcement from Trump regarding tariffs, China clarified that their new export controls are not a complete prohibition, promising approvals for compliant applications.

Analysts commented:

“Amid the market’s downturn on Friday, our view was that the 100% tariff announcement by Trump was a bargaining chip. After China’s statement last night, we believe the odds of Trump’s 100% tariff on China going into effect are extremely low.”

Consequently, it appears that the substantial liquidation event, resulting in over $19 billion lost within a day, stemmed from misinterpretations rather than impending economic sanctions. Additionally, US Vice President JD Vance emphasized the value of the relationship between Trump and Xi, indicating that the situation was positively impacting crypto valuations.

Earlier today, Bitcoin was trading below $112,000, but jumped over $2,500 to reach $114,500, witnessing a notable recovery of more than $10,000 since its recent low.

Ethereum also saw significant upward movement, shooting towards $4,100, while other altcoins such as BNB, MNT, TAO, ASTER, and PENGU made impressive daily gains.

For further related reading, check out:

• Robert Kiyosaki’s Big Warning: Buy BTC and ETH as the Worst Market Crash Is Yet to Come
• Altcoin Bloodbath: ETH, XRP, SOL, DOGE Crumble as Liquidations Near $900M