United States Treasury Secretary Scott Bessent revealed on Sunday that substantial progress has been made in the trade agreement discussions between the US and China, raising hopes among investors for a resurgence in the bullish market trends.

The new trade framework is expected to eliminate the necessity for the additional 100% tariffs originally proposed by US President Donald Trump on October 10.

“President Trump provided me with significant negotiating leverage, which allowed us to create a substantial framework that ensures we can engage in further discussions with the Chinese without the threat of 100% tariffs looming over us,” Bessent stated.

Scott Bessent discusses trade negotiations

Scott Bessent breaks the news of positive trade negotiations between the US and China. Source: The White House

Bessent’s remarks came in the wake of a calm in trade rhetoric between the two nations, culminating in President Trump confirming a meeting with Chinese President Xi Jinping set to take place at the Asia-Pacific Economic Cooperation (APEC) summit on October 31.

Initially, Trump had mentioned that there was “no reason” to engage with Chinese representatives, which heightened concerns of a prolonged trade conflict. However, the recent developments have sparked excitement among crypto investors, with markets experiencing a positive shift following the announcement.

As news of the trade framework surfaced, crypto markets have historically shown sensitivity to such negotiations, often bolstering performance during favorable updates. Cryptocurrencies like Bitcoin (BTC) saw a modest increase of 1.8%, while Ether (ETH) and Solana (SOL) saw gains of 3.6% and 3.7%, respectively, on the back of this news.

“If the US-China trade agreement is finalized and the Federal Reserve lowers interest rates, asset prices could surge disproportionately this week,” remarked investor and analyst Anthony Pompliano.

Crypto markets align closely with tradewars outcome, often pivoting on positive announcements.