US Treasury Secretary Scott Bessent announced that significant progress has been achieved in the negotiations regarding a trade framework between the United States and China. This advancement could alleviate the urgency of imposing the additional 100% tariffs previously suggested by President Donald Trump. The proposed trade framework aims to address existing economic tensions, fostering hopes for the recovery of the market.

Bessent remarked:

“President Trump gave me a great deal of negotiating leverage with the threat of 100% tariffs on November 1, and I believe we have reached a very substantial framework that will avoid that and allow us to discuss many other things with the Chinese.”

This development comes amid easing trade tensions between the two nations, with President Trump scheduling a meeting with China’s President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation (APEC) summit on October 31.

Financial investors have responded positively, with crypto markets seeing increases following Bessent’s update. The anticipated deal is expected to significantly influence asset prices, including cryptocurrencies.

As Jeff Park, an adviser at Bitwise, noted, the trade deal’s positive implications may elevate Bitcoin and gold to new peaks. Investor Anthony Pompliano added:

“Asset prices will get crazy this week if the US-China trade deal is announced and the Fed cuts interest rates. Buckle up.”

This brings a sense of optimism to the crypto space, which is reactive to developments in trade relations.