Diplomatic Breakthrough Expected
United States President Donald Trump has confirmed plans to meet Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit in Seoul, Korea, starting October 31. The announcement came during a Sunday interview with Fox News' Maria Bartiromo, signaling a potential de-escalation in trade tensions between the world's two largest economies.
Trump expressed optimism about reaching a fair trade agreement with China, praising Xi as a strong leader with an amazing life story. The President stated the upcoming meeting in South Korea would include discussions aimed at resolving ongoing trade disputes between the two nations.
Cryptocurrency Market Reacts Positively
Bitcoin rose approximately 2% following Trump's comments on Sunday, with the leading cryptocurrency benefiting from renewed market confidence. The positive sentiment extended across digital assets, demonstrating a broad-based recovery after recent market turbulence.
Ethereum and BNB each recorded gains of roughly 3.5% as cryptocurrency markets responded favorably to the diplomatic developments. Solana climbed nearly 4% during the same period, according to TradingView data, reflecting strong momentum across major digital assets.
Shift from Previous Stance
The confirmation marks a significant shift from Trump's earlier stance when he indicated there was no reason to meet Xi at the APEC summit. Previous announcements of additional trade tariffs on China had triggered severe market reactions, with crypto derivatives experiencing nearly $20 billion in liquidations, marking the worst such event in history.
Market sentiment had reached a six-month low following the historic crash, with investor fears centered on a prolonged trade war. The Crypto Fear and Greed indicator dropped to 22 on Friday, signaling extreme fear and widespread caution among market participants.
Analyst Outlook and Economic Stability
However, analysts at the Kobeissi Letter projected a short-lived downturn due to technical factors, maintaining that the long-term bull trend remains intact. The trade tensions between the U.S. and China had created a perfect storm of leverage, thin liquidity, and excessive risk that amplified the market impact.
The upcoming summit represents a critical opportunity for both nations to establish a framework for fair trade relations. Trump's willingness to engage in dialogue with Xi has been interpreted by markets as a constructive step toward economic stability and reduced geopolitical uncertainty.