Key Insights:
- Bitcoin price rebounded above $106K after dropping over 6% to $103.6K.
- US President Donald Trump confirmed a meeting with China’s President Xi Jinping.
- But, the Crypto Market Fear & Greed Index fell from 64 (greed) to 22 (extreme fear).
Bitcoin price rebounded after dropping over 6% to $103,659 on Friday, as the US President Trump confirmed that high tariffs on China will “not” remain. The US stock markets also erased losses to make a V-shape recovery.
BTC and the broader crypto market crashed due to renewed U.S.-China trade tensions, miner selloffs, and spot ETF liquidations. Concerns over U.S. credit, bank loan losses, and the government shutdown were driving investors toward Treasurys and gold.
President Donald Trump Cools U.S.-China Trade Tensions
The United States and China signaled de-escalation in their trade disputes on October 17. President Trump says “no” when asked if China tariffs will stand.
Trump confirmed that he is meeting with China’s President Xi Jinping in 2 weeks, adding that current tariffs on Chinese goods are not sustainable. He said, “I think we’ll be fine with China.”
As a result, Bitcoin price rebounded from a low of $103k today.
Last Friday, Donald Trump threatened 100% tariffs on China after expressing concerns over control over rare earths. He also said there is “no reason” to meet Chinese President Xi anymore.
This has caused a massive dip in Bitcoin price and the broader crypto market. Simultaneously, the stock market also retreated.
Today, he has taken a complete 180-degree turn, cooling fears in the stock and crypto markets. This comes as China accused the U.S. of deliberately causing panic over rare earth controls, claiming they are open to talks.
Damage to Bitcoin Price & Crypto Market by Trump Jitters
Crypto investors took to social media to reveal how they have lost a significant amount of money in the sudden “Black Friday” crypto market crash.
Crypto Market Fear & Greed Index fell from 64 (greed) to 22 (extreme fear) in just a week. Whales and investors have turned away from the market as Bitcoin price continued to decline, while gold hit a new all-time high of $4,340 per ounce today.
The crypto community is saddened by the death of Ukrainian crypto trader Konstantin Galish, who was found dead in his Lamborghini. Authorities are investigating his death.
Meanwhile, many crypto stocks crashed, and the digital asset treasury (DAT) strategy faced scrutiny as the company’s enterprise value fell below the value of its crypto holdings.
Asia’s largest Bitcoin treasury, Metaplanet, issued a statement that it will remain focused on buying more BTC. Simon Gerovich claimed their focus is on BTC per share rather than mNAV.
Experts turned bearish on markets and claimed that tariffs are now bad for the United States. Given the recent decline in U.S. equities due to private credit defaults and regional bank stress, potential liquidity issues within the U.S. financial system could arise.
Bitcoin Price Rebounds
Bitcoin price jumped from the 24-hour low of $103,598.43 after Trump’s statement fueled positive sentiment. The BTC price was trading at $105,224, still more than 5% down at the time of writing.
Furthermore, the trading volume has increased by 56% in the last 24 hours, indicating a rise in interest among traders.
Traders now watch for other risks, such as crypto options expiry and macro events, such as CPI release, amid the prolonged government shutdown.
The derivatives market showed mixed reactions in the last few hours, as per CoinGlass data. At the time of writing, the total BTC futures open interest (OI) change was down in the past hour, 4-hour, and 24-hour periods.
In the last 24 hours, BTC futures OI has tumbled more than 3%. However, BTC futures OI on Binance climbed by more than 1.18% in the last hour and 0.55% in the past 4 hours.