Bitcoin Surges on US-China Trade Detente, Analysts Predict $100,000 Floor
NEW YORK – Bitcoin is holding strong above $114,000 as easing tensions in the US-China trade war fuel market optimism and drive renewed institutional investment into cryptocurrency. A potential agreement – involving China suspending rare earth export restrictions and increasing US soybean purchases in exchange for the US dropping proposed 100% tariffs – has sparked a rapid recovery from a recent market crash, leading analysts to believe Bitcoin has established a new price floor.
The shift comes after October 10th, when former President Trump’s tariff threats and China’s export curbs triggered the largest liquidation event in crypto history, wiping out nearly $20 billion in positions within hours. However, the market stabilized quickly, with Bitcoin currently less than 10% off its all-time high reached earlier in the month.
“Big money and smart money have stopped selling,” Farzam Ehsani, CEO of crypto trading platform VALR, told DL News. “whale wallets have added over 45,000 Bitcoin since the crash – that’s institutional accumulation, not panic.”
Scott Bessent reported over the weekend that the proposed agreement includes China suspending rare earth export restrictions for a year and increasing purchases of US soybeans. Ed Yardeni, president of Yardeni research, noted that US markets rose on Monday following reports of a framework for a new trade deal. “That would amount to a ceasefire in their trade war, with both the US 100% additional tariff on chinese imports and severe Chinese restrictions on their exports of rare-earth minerals and magnets to the US postponed. Hooray!” Yardeni said.
Further bolstering the bullish sentiment, Bitcoin exchange-traded funds have seen $636 million in inflows over the past five trading days, according to SoSoValue data. Analysts are also anticipating a 0.25% decrease in interest rates by the Federal Reserve on Wednesday, which is expected to amplify the rally. The CME FedWatch tool currently indicates a 98% probability of the rate cut, a sentiment echoed by the crypto betting platform Polymarket, which also assigns a 98% chance to the decrease.
As of this writing, Bitcoin is trading at $114,500, down 0.7% over the past 24 hours, while Ethereum is down 1% trading at $4,115.
