Financial markets saw a boost on Sunday as US and Chinese negotiators signaled progress towards resolving months of trade tensions. Cryptocurrency traders followed suit, with Bitcoin exceeding $113,600, Ethereum breaking through the $4,000 mark, and Solana soaring above 3.5% to reach nearly $200. This upward trend reflects a notable shift: a pause in escalating events between the world’s two largest economies. US Trade Representative Jamieson Greer stated that discussions with China are progressing towards a point where leaders can hold productive meetings later this week. The tentative truce comes after rare-earth exports and critical minerals supply chains were major points of contention following Trump’s threat of 100% tariffs on Chinese goods earlier this month. The resulting market turmoil saw trillions wiped from global equities, with the crypto market experiencing a significant drop as investors braced for potential trade retaliation. But Sunday’s positive developments indicated a change in direction for both sides. Treasury Secretary Scott Bessent confirmed that both countries agreed on a framework to prevent further tariff escalation, paving the way for continued discussions. This diplomatic shift was instantly reflected in the cryptocurrency markets. Bitcoin rose by 2%, Ether and Solana added 3.4% and 3.5% respectively, as risk appetite returned. This rally demonstrates how the US-China trade dynamic directly impacts market sentiment for cryptocurrencies like Bitcoin which act as a proxy for global liquidity conditions. The recent developments in trade negotiations offer a chance for investor optimism to shift from fear to participation as the crypto world awaits further updates.