Recent weeks have seen crypto markets experience significant volatility, triggering a decline in valuation that many experts had anticipated. The market witnessed shocks reminiscent of former President Trump’s warnings about looming threats, leading to a sharp drop. U.S. Treasury Secretary Bessent has shed light on the complex dynamics between the US and China concerning cryptocurrencies. Ongoing negotiations are on the verge of escalating into a trade conflict, impacting international trade activities. While China is seeking concessions in its deals with other nations, the US faces difficulties in finding common ground. Li, a Chinese trade representative, highlighted China’s ambition to dominate rare earth elements while aiming for new trade barriers. However, despite this pressure from China, the US maintains multiple strategic options within its trade discussions with China. Optimism remains as Secretary Bessent emphasizes ongoing dialogues with China and a unified US response. He believes trust built between former President Trump and President Xi will play a key role in mitigating tensions and fostering diplomatic progress over the next few months. While some experienced market players view the recent downturn as a potential buying opportunity, others are cautious about selling prematurely. The future of cryptocurrencies appears to be shaped by the ongoing trade tensions between China and the US, along with the Federal Reserve’s interest rate cuts. Continued engagement on diplomatic fronts could boost cryptocurrency prospects. Despite potential risks from Russia, October may end on a positive note for cryptocurrencies based on macroeconomic strategies and diplomatic efforts.