The crypto market surged on Sunday after US Treasury Secretary Scott Bessent confirmed that Washington and Beijing had reached a “framework” agreement to avert the 100% tariffs on Chinese goods threatened earlier this month by President Donald Trump.
Bitcoin rose 1.8% to trade above $113,600, while Ethereum climbed past $4,040. The total crypto market cap recovered to $3.88 trillion, reflecting renewed investor confidence following weeks of tariff-driven volatility.
No Trade War Between the US and China
Bessent said that after two days of negotiations in Malaysia with China’s International Trade Representative Li Chenggang, both sides agreed on a preliminary plan to prevent the tariff escalation and pave the way for further talks.
SponsoredTrump and Chinese President Xi Jinping are expected to meet in South Korea on Thursday to finalize details.
This marks a dramatic turnaround from October 10, when Trump’s announcement of 100% tariffs triggered a global market rout.
The S&P 500 erased $1.2 trillion in 40 minutes, and Bitcoin plunged over 10%, wiping out more than $200 billion in crypto market capitalization within hours.
The panic deepened as traders faced forced liquidations across major exchanges, fueling accusations of manipulation against Binance.
Sunday’s announcement signals a potential cooling of trade tensions that had rattled both traditional and digital markets.
“President Trump gave me great negotiating leverage with the tariff threat,” Bessent said, adding that the framework “will allow us to discuss many other things with the Chinese.”
Trump also signed new trade deals with Cambodia, Thailand, and Malaysia on the sidelines of the ASEAN conference in Kuala Lumpur. Further meetings with Xi are planned before Lunar New Year in February and during the G20 Summit in the US next fall.
For crypto investors, today’s rebound reflects how tightly the market remains linked to macroeconomic policy and geopolitical risk — a reminder that sentiment in Washington and Beijing can still swing Bitcoin as fast as any halving cycle.
