Crypto Markets Rise as Trump Announces Meeting with Xi Jinping
Optimism for a trade deal between the US and China boosts cryptocurrency prices.
United States President Donald Trump confirmed on Sunday that he will meet with China’s President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit in Seoul, South Korea, which is scheduled to start on October 31.
“We’re going to meet in a couple of weeks. We’re going to meet in South Korea, with president Xi and other people, too,” Trump told Maria Bartiromo of Fox News after a de-escalation of trade tensions between the two countries. Trump stated:
“[Xi Jinping] is a very strong leader, a very amazing man. You can look at what he’s done, where he is in his life. It is an amazing story. It’s a story for a great movie. I think we’re gonna be fine with China, but we have to have a fair deal. It’s going to be fair.”
Trump had previously indicated he saw no need to meet Xi Jinping at the APEC summit, followed promptly by the announcement of additional tariffs on China, which led to a significant drop in cryptocurrency markets, eliminating up to 99% of value from some altcoins.
Trump’s statements on social media triggered a cascading liquidation of nearly $20 billion in the crypto derivatives market, marking the most severe liquidation event in cryptocurrency history. This was compounded by high leverage, low liquidity, and excessive risk.
Crypto Market Response to Trade Negotiations
The price of Bitcoin (BTC) saw an uptick of nearly 2% on Sunday, buoyed by Trump’s remarks, with other cryptocurrencies also experiencing moderate increases.
Bitcoin was not alone, with Ether (ETH) and BNB each gaining approximately 3.5%, and Solana’s SOL climbing close to 4%, according to data sourced from TradingView.
Many fear that the recent crypto market crash could lead to a prolonged trade war, causing market sentiment to drop to a six-month low. The Crypto Fear and Greed index signaled “Extreme Fear” at 22 on Friday, reflecting the cautious outlook among investors regarding the cryptocurrency landscape.
However, analysts at the Kobeissi Letter forecast that the market downturn will be brief, attributing potential recovery to technical factors with the long-term bullish trend remaining intact.
