Bitcoin Rebounds as Trump-Xi Meeting Eases Trade Tensions, Boosting Crypto Market Sentiment

Bitcoin regained ground early Thursday after initial post-Fed losses, following a positive outcome from the meeting between U.S. President Donald Trump and Chinese President Xi Jinping. Speaking aboard Air Force One, Trump announced a one-year U.S.-China trade agreement with potential extensions, confirming that the rare earths issue had been resolved. He also revealed that U.S. tariffs on China would be lowered from 57% to 47%, with plans for reciprocal state visits in the coming months.

The news helped Bitcoin (BTC) recover from an overnight dip to $108,000 after Federal Reserve Chair Jerome Powell signaled uncertainty about a December rate cut. The cryptocurrency had fallen from $113,000 to $110,000 before rebounding as traders reacted to easing geopolitical tensions. Major altcoins like XRP and DOGE dropped around 4%, while Ether (ETH), Solana (SOL), BNB, and Cardano (ADA) fell up to 3%. U.S. stock futures weakened slightly, and the dollar index held steady near 99.00.

The Federal Reserve’s decision to cut its benchmark interest rate to 3.75%-4% and end quantitative tightening on December 1 marks a shift toward looser financial conditions. This policy pivot increases liquidity, reduces real yields, and generally supports risk assets like cryptocurrencies. As liquidity returns, investors may rotate from cash into growth and alternative stores of value, bolstering Bitcoin’s outlook.

However, geopolitical dynamics remain the key swing factor. If the U.S.-China deal solidifies and tariffs are further eased, Bitcoin could extend gains beyond $115,000 amid improving global risk sentiment. Conversely, if talks falter, the dollar could strengthen, curbing crypto’s rally. For now, the convergence of softer monetary policy and easing trade tensions offers a favorable setup for crypto markets heading into November.