The United States and China wrapped up talks in Kuala Lumpur that market players called a welcome step toward cooling trade war tensions.
Based on reports, negotiators outlined a preliminary framework aimed at easing points of friction ahead of a planned summit between US President Donald Trump and Chinese President Xi Jinping.
BREAKING: US Treasury Secretary Bessent says China is “ready” to make a trade deal with the US after 2 days of negotiations.
Bessent says the agreement will remove President Trump’s 100% tariff set to go live November 1st.
Officials reportedly reached agreements designed to avert the imposition of 100% tariffs that had been threatened, though final approvals still require domestic review.
Delegates from both countries met in Malaysia during the wider ASEAN meetings, giving negotiators a neutral venue and a built-in audience of regional leaders.
The talks were scheduled to coincide with the ASEAN summit and stressed they were meant to preserve the momentum toward the leaders’ meeting next week.
Markets reacted within hours. Based on CoinDesk reporting, Bitcoin briefly rose above $113,000 as traders bought risk assets on the positive headlines, but volatility followed and large leveraged positions were cleared — over $657 million worth, split roughly evenly between long and short bets.
When geopolitical risk eases, some investors move back into stocks and crypto. That shift can increase demand and push prices up, at least for a while.
But this is not a done deal. The framework is an early step. Agreement language must be turned into firm actions and then approved by leaders and regulators. Markets may cheer now, and then test the news again as details emerge.
Reports have disclosed several open points: exact terms on export controls, the timing of any tariff rollbacks, and what enforcement will look like.
Even with positive signals, macro drivers like interest rates and inflation will still shape whether crypto sees a lasting recovery or just a short-lived bounce.
Featured image from Getty Images, chart from TradingView
