Bitcoin Surges Past $113,000 on US-China Trade Tariff Progress

Bitcoin touched $113,829 early Sunday morning, fueled by encouraging signs from international trade discussions. The cryptocurrency’s advance came after officials from the United States and China outlined a framework agreement in Kuala Lumpur. This development, guided by China’s Vice Minister of Commerce Li Chenggang, tackles multiple trade disputes that had lingered for months.

US Treasury Secretary Scott Bessent outlined the agreement’s main elements in a recent update. It commits to avoiding 100% tariffs on Chinese imports and holds off on stricter export limits for China’s rare earth minerals. These steps address core concerns that could have disrupted global supply networks.

Market Recovery Builds Steam

The framework arrives at a pivotal moment, easing strains from recent escalations in trade disputes. Two weeks earlier, Bitcoin had slipped under $104,000 as markets reacted to threats of steep tariffs from former President Trump and China’s curbs on rare earth shipments. Those tensions had dampened enthusiasm for digital assets, sparking swings in prices and reduced activity among traders.

Relief from the Kuala Lumpur talks prompted a quick turnaround in the sector. The overall value of cryptocurrencies rose to $3.9 trillion by Sunday afternoon, up 2% from the day before. This lift highlights how shifts in global trade can ripple through assets like Bitcoin, which often mirrors wider economic signals.

Ethereum steadied above $4,000 once more, drawing attention from platforms built on its network. Solana advanced over 3%, nearing $200 as its efficient processing appeals to a growing user base. BNB crossed $1,130 with a 2% gain, supporting expanded use in trading and payments worldwide.

Experts view the trade outline as a steadying force for short-term trends. By sidestepping tariff increases, it secures supplies of vital materials like rare earths, which power devices and blockchain infrastructure. Fears of shortages had earlier raised worries about costs for Bitcoin mining gear, a factor that could have pressured operations in the Bitcoin space.

The deal’s effects reach further into investor strategies. It creates clearer conditions for large funds, which had paused commitments during the uncertainty. Bitcoin focused exchange-traded funds noted fresh investments in recent days, aligning with progress in the negotiations. Such flows enhance trading depth and affirm Bitcoin’s appeal as a buffer against policy-driven currency shifts.

Details on putting the framework into action will draw close scrutiny in coming sessions. Upcoming meetings between American and Chinese representatives will set deadlines for easing tariffs and refining export rules. Though full trade harmony lies ahead, this progress lays groundwork for confidence, encouraging funds to return to assets with growth potential like cryptocurrencies.