The cryptocurrency topped $116K as tensions between the world’s two largest economies showed signs of easing.
Bitcoin and Stocks Rally on Renewed Optimism for a US-China Trade Deal
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Markets Surge Amid Signs of a US-China Trade Resolution
Although it was the marvel of a 79-year-old Donald Trump dancing on his arrival in Malaysia that captured hearts across the globe this weekend, markets were more focused on the U.S. president’s Treasury Secretary, Scott Bessent, when he announced on Sunday that Washington and Beijing had agreed to a “very substantial framework” for a trade deal. Bitcoin climbed above $116K and stocks rallied on the news Monday morning.
Trump and his delegation arrived in Kuala Lumpur, Malaysia’s capital, to attend the 47th Association of Southeast Asian Nations (ASEAN) summit on Sunday. Trump was able to broker a peace deal between Cambodia and Thailand while Bessent signed memorandums of understanding (MOUs) for rare earth deals with several Asian nations.
But the real breakthrough, at least economically, was the subsequent thawing of the recent U.S.-China deadlock after Bessent managed to negotiate a framework for a potential trade deal between the two countries. The optimism alone was enough to buoy both stocks and crypto, although the real test will come when Trump and Chinese President Xi Jinping meet in South Korea on Thursday for the Asia Pacific Economic Cooperation Summit (APEC).
“We’ve created a framework for the two leaders to discuss on Thursday in Korea, so that’s optimism,” Bessent explained during a Sunday appearance on NBC. “I think it will be fantastic for U.S. citizens, for U.S. farmers, and for our country in general.”
Overview of Market Metrics
Bitcoin was trading at $115,681.55 at the time of writing, a 1.93% price appreciation since yesterday, according to Coinmarketcap data. The digital asset was up 4.73% for the week and has fluctuated between $113,015.30 and $116,273.31 since Sunday.
Twenty-four-hour trading volume jumped 87.11% to $62.55 billion, an expected post-Sunday phenomenon, and market capitalization mimicked price, climbing 1.95%. Bitcoin dominance was mostly flat over 24 hours, with a slight 0.01% uptick to 59.63%.
Total value of bitcoin futures open interest rose 3.05% to $76.18 billion for the day, according to Coinglass data, and liquidations reached a total of $140.97 million. Short sellers comprised most of that figure with $123.30 million in losses. Conversely, most long investors correctly predicted Monday’s price action, losing a much smaller $17.67 million in liquidations.
FAQ ⚡
- Why did Bitcoin rise above $116K?
News of a “substantial framework” for a U.S.-China trade deal lifted investor sentiment across global markets. - What sparked the renewed optimism?
Treasury Secretary Scott Bessent announced progress toward a trade resolution ahead of this week’s APEC summit. - How did other markets react?
Stocks surged alongside crypto, with Bitcoin up nearly 2% and weekly gains approaching 5%. - What’s next for investors?
All eyes are on Thursday’s Trump–Xi meeting in South Korea, which could confirm or derail the trade breakthrough.
