US Treasury chief Bessent says 'substantial' trade framework with China reached
United States Treasury secretary Scott Bessent said on Sunday that the US and China have made “substantial” progress on a trade deal framework, sparking investor hopes of reigniting the bull market.
The proposed trade framework will likely remove the need for the 100% additional tariffs announced by US President Donald Trump on October 10, Bessent said. He added:
"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."
Bessent’s comments follow weeks of easing trade tensions between the two countries, culminating in president Trump confirming the meeting with China’s President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit on October 31.
President Trump previously said there was “no reason” to meet with representatives from China, sparking investor fears of a new protracted trade war between the two countries.
Crypto investors, traders, and industry executives celebrated news of the trade framework and the increased likelihood of a deal between the US and China, as crypto markets experienced a modest rally on the positive trade deal news.
Related: Crypto traders blame Trump’s tariffs in search of ‘singular event’: Santiment
Crypto markets rally as traders and investors celebrate trade framework
Crypto markets are sensitive to trade war developments, rallying when news is positive and declining when trade tensions erupt or global trade is disrupted.
President Trump’s social media post on October 11, announcing additional 100% tariffs on China, ignited a crypto market meltdown that saw some crypto tokens lose up to 99% of their value in 24 hours.
Bitcoin (BTC) rallied by a modest 1.8%, Ether (ETH) pumped by 3.6%, and SOL (SOL) rose by 3.7% following Bessent’s announcement on Sunday.
Jeff Park, an advisor at investment company Bitwise, said the positive trade deal news will send BTC and gold to new all-time highs.
“Asset prices will get crazy this week if the US-China trade deal is announced and the Fed cuts interest rates. Buckle up,” investor and analyst Anthony Pompliano also said.
Magazine: Hong Kong isn’t the loophole Chinese crypto firms think it is
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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