Former US President Donald Trump announced a year-long agreement with China at the APEC summit, lowering tariffs and resolving rare earth export issues. This move has triggered significant market changes, particularly for cryptocurrency investors.
The trade deal promises increased stability, leading to positive impacts on Bitcoin and Ethereum prices. Institutional investors are embracing risk again as the Federal Reserve’s upcoming policy shift influences market liquidity.
Key details include:
– Trump confirmed a one-year agreement to lower tariffs.
– Xi Jinping agreed to address fentanyl precursors.
– These actions aim to ease tensions between the US and China. These changes have ripple effects across global markets, including the cryptocurrency industry.
Cryptocurrencies are showing volatility, with Bitcoin briefly dropping to $108,000 but rebounding quickly, while Ethereum prices saw a surge in positive sentiment.
Institutional investors have started focusing on Bitcoin and Ethereum as these cryptocurrencies gain momentum.
The Federal Reserve’s decision to cut rates and halt quantitative tightening by December is expected to further encourage risk-taking among crypto traders. This could lead to increased liquidity in the market, potentially impacting both Bitcoin and Ethereum.
Past US-China trade negotiations have shown short-term market fluctuations followed by rebounds once clarity has been established. The recent volatility in Bitcoin and Ethereum may be linked to the anticipation of these shifts in market dynamics.
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