Bitcoin experienced an unexpected surge on Sunday, climbing past $113,000 for the first time since Tuesday. This price movement follows positive news from US Secretary Bessent, who indicated that China is prepared to reach a trade agreement that would lift the 100% tariff previously imposed by the POTUS.
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.
— The Kobeissi Letter (@KobeissiLetter) October 26, 2025
Background of the Trade Tensions
Previously, on October 10, Donald Trump had announced that China was engaging in deceitful practices in certain sensitive economic areas, warning that the US would implement a 100% tariff on various products. This announcement caused significant disruption in the financial markets. He later confirmed the new taxation, which was scheduled to take effect on November 1.
Diplomatic Efforts and Preliminary Consensus
Despite the escalating trade tensions, leaders from both superpowers scheduled a meeting in Europe this week. In the interim, delegations from both nations have met on multiple occasions to negotiate the terms of a potential agreement. A Reuters report from earlier today indicated that the POTUS expressed confidence in reaching a deal with President Xi Jinping, following a preliminary consensus reached by top economic officials during the trade talks.
The Kobeissi Letter noted that this development represents the tenth and final step in Trump's tariff plan, which involves announcing a new agreement and a subsequent positive impact on financial markets.
Impact on the Crypto Market
With most traditional markets closed on Sunday, the cryptocurrency industry has been the primary beneficiary of this positive news. Bitcoin, the leading cryptocurrency, has seen a significant surge, reaching a multi-day peak of nearly $113,500 after breaking past $112,000 and $113,000 earlier in the day. This rebound comes after Bitcoin experienced a sharp decline during the October 10 market downturn, dropping to as low as $101,000 on some exchanges.
