CMC News

Crypto Markets Eye Rebound as U.S.-China Ease Trade War

Both the U.S. and Chinese governments released statements Sunday suggesting they're open to negotiations, giving markets hope that the tariff battle might cool down instead of worsening.

China's Ministry of Commerce said it's ready to talk with other countries about trade issues and the rare earth mineral export limits that sparked the latest tensions. Officials also mentioned they'd consider adjustments to make trade easier, including possible exemptions from new restrictions.

President #Trump posted the same day, telling people not to worry about #China and saying everything will work out. He called President Xi highly respected and suggested that Xi had made a mistake but doesn't want his country to fall into depression, adding that America wants to help China, not harm it.

These softer messages come after Friday's chaos when Trump's tariff threats caused the worst single-day wipeout in crypto history. The rare earth controls and America's response sent shockwaves through global #markets.

Analysts at The Kobeissi Letter wrote Sunday that if Trump keeps de-escalating, markets could jump significantly on Monday. They noted that financial markets react extremely fast to whatever Trump posts on social media.

Earlier on Friday, Trump had said there was no point in meeting Xi at the Asia-Pacific Economic Cooperation summit scheduled for Oct. 31 in Seoul, Korea. He made that comment right after China announced the export controls.

Jeff Park, who advises at #Bitwise, said the Trump-Xi meeting will definitely still happen regardless of the tariff drama. Park argued Trump cares more about photo opportunities and grand ceremonies for his legacy than the actual #trade disputes.

Friday saw Trump announce an additional 100% tariff on everything from China, responding to their rare earth limits. Those tariffs are supposed to start Nov. 1, 2025, or possibly sooner.