The long-awaited Trump-Xi trade deal finally landed, and crypto bulls are celebrating. After U.S. President Donald Trump met Chinese President Xi Jinping in South Korea, tariffs on Chinese goods were cut sharply, instantly boosting global market sentiment. Trump called the meeting “amazing,” revealing that both nations signed a one-year trade pact focusing on rare earths and critical minerals — a move that sent Bitcoin (BTC) flying.
A global reset for trade — and crypto
The U.S. reduced overall tariffs on Chinese imports from 57% to 47%, slashed fentanyl-related tariffs to 10%, and eased chip export restrictions involving Nvidia. The two leaders agreed to revisit the deal annually and plan reciprocal state visits in 2026. This de-escalation triggered a relief wave across risk assets, especially in crypto, as traders priced out fears of a prolonged
trade war.
Bitcoin rebounds on easing tensions
Right after the announcement, BTC rebounded sharply — surging from around $107K to over $113K before stabilizing near $110,250. Ethereum, Solana, XRP, and BNB all jumped over 1% within the hour. Although Bitcoin ETFs recorded $471 million in net outflows, analysts see this as short-term noise (we had 4 start days of inflows ). Ethereum ETFs also saw outflows, except for BlackRock’s ETHA, which attracted modest inflows.
Analyst outlook: $120K BTC back on the radar
The only bearish point in the meeting that until now no joint statements has been announced which is making everyone thinks something is wrong and the trade deal didn’t happen.
So that’s why the Crypto market is dumping and like always the Leverage has helped to ruin the meeting pump with nearly $825.66 M has been liquidated in the last 24hr with $656.76M in long positions .
As per my view and as predicted yesterday , I think that the rate cuts as expected to happen it pushed for a dump on the #BTC price that was announced by everyone on the cryptosphere and as it happen in the last 3 FOMC , the #Bitcoin price will pump a short while after the FOMC. So no need to panic, the downturn of today was expected and also the Bitcoin ETF outflows of $470.7M has also impacted the price.
I think that everybody need to look to the bright side of the story , a successful meeting between the 2 strongest economies that was awaited from a long time ago can send the global economy to a new high levels . This Trump-Xi trade deal will be recorded in History Books.
My Thoughts
The Trump-Xi trade deal isn’t just a diplomatic win — it’s a liquidity catalyst. Lower tariffs and better trade sentiment mean risk assets breathe easier. Expect stronger altcoin rotations, bullish derivatives positioning, and a fast climb back toward $120K BTC if macro tailwinds hold.