Crypto markets jumped on Sunday amid reports the US and China made progress in high-stakes trade negotiations.
The price of Bitcoin and Ethereum rose 1.6% and 2.8%, respectively, as officials said the two countries were unlikely to follow through with threats to impose sky-high tariffs and export controls.
“I would expect that the threat of the 100% [tariffs] has gone away, as has the threat of the immediate imposition of the Chinese initiating a worldwide export control regime,” US Treasury Secretary Scott Bessent told CBS News Sunday morning.
Renewed trade tensions earlier this month sent markets tumbling and caused the single largest liquidation event in crypto history.
On October 10, China said it would further restrict export of rare earth elements used in the manufacture of computer chips and other technology.
US President Donald Trump promptly hit back. On October 11, he said he would impose an additional 100% tariff on Chinese goods as well as export controls on “critical software” on November 1.