US-China Trade Truce Sparks Global Crypto Market Rally

Recent easing in US-China trade tensions has sparked a significant rally in global markets, including cryptocurrencies such as Bitcoin and Ethereum. Following working-level talks in Malaysia, a preliminary framework agreement was reached, delaying China's rare earth export restrictions for a year and suspending the US threat of 100% tariffs on Chinese goods, which had previously caused major market disruptions. This truce, expected to be formalized by Presidents Donald Trump and Xi Jinping at the upcoming APEC summit, has boosted investor confidence and risk appetite, with Bitcoin prices crossing $115,000 and the total crypto market capitalization surpassing $3.9 trillion. Analysts like Tom Lee predict this improved geopolitical climate, combined with expectations of a Federal Reserve interest rate cut, will drive a renewed crypto and equity rally. The deal also includes increased Chinese imports of US agricultural products and potential US easing of certain export controls, further contributing to market optimism. Overall, this developing trade détente is seen as a critical factor reducing geopolitical risk and enabling growth in risk assets across global markets.