Bitcoin jumped significantly on October 24, breaking past $111,000. This 3% surge came directly after the White House confirmed a planned Trump Xi meeting. The news ignited optimism that the two leaders could de-escalate recent trade tensions.
The announcement provided a clear catalyst for the rally. Consequently, risk assets across the board found renewed strength. This Trump Xi meeting will be the first in-person talk between the presidents since Trump returned to office. It is scheduled to take place in Washington later this month.
This diplomatic development is crucial for markets. Previously, Trump’s 100% tariff announcement on China triggered a massive crypto crash. Therefore, this new dialogue offers hope for a calmer economic relationship. The talks are expected to cover trade imbalances, tariffs, and supply-chain issues.
Broader Market Impact
The Trump Xi meeting injected short-term confidence into a nervous market. Furthermore, it aligns with growing anticipation that the Federal Reserve will end its quantitative tightening program. This combination of positive geopolitical and monetary news is a powerful bullish driver.
The White House press secretary reiterated a firm stance on fair trade. However, the mere fact that dialogue is happening was enough to shift market sentiment. Traders are clearly betting that communication will prevent a further escalation into a full-blown trade war.
My Thoughts
This is a classic “hope rally” based on the potential for improved relations. The market’s violent reaction to the original tariff threat shows how sensitive crypto is to U.S.-China relations. While the meeting doesn’t guarantee a deal, it opens a door that was previously slamming shut. If progress seems likely, this could be the foundation for a sustained Q4 rally, especially with a dovish Fed also in the picture.
