Bitcoin surged past the $114,000 mark on Sunday, marking a significant milestone. Ether (ETH) and other altcoins also experienced impressive gains following this news. This surge coincided with reports that tensions between the U.S. and China may be easing after Friday’s threats by President Trump were potentially exaggerated.
A major factor behind the market rebound is the potential de-escalation of trade conflicts.
A recent analysis suggests that the tariffs announced by President Trump on Friday may have been a strategic maneuver, with China stating their export controls are not a complete ban and will be granted for applications meeting specific requirements. This interpretation led analysts to believe that the market panic triggered by these initial tariff threats was driven by a misunderstanding.
Adding to the positive sentiment, Vice President JD Vance expressed support for improved relations between Trump and Xi Jinping, with an emphasis on potential negotiation avenues rather than excessive leverage. This stance appears to have been instrumental in driving the crypto market surge this weekend.
While Bitcoin briefly traded below $112,000 earlier in the day before skyrocketing over $2,000, it now stands at over $114,500 after retracing slightly. Other altcoins also saw significant gains, with Ethereum reaching almost $4,100 and BNB rising over 12% to trade close to $1,300.
The market’s recent volatility has seen over $19 billion wiped out in less than a day following the initial tariffs announcement from President Trump. This surge now suggests a potential reversal of the previous downtrend.