Bitcoin finds its footing as expected US-China tariff truce cools market panic
Bitcoin recovered after a major liquidation event, boosted by optimism surrounding a potential US-China trade deal.Summary
Cryptocurrency markets rebounded following a record $19 billion liquidation event, primarily driven by positive sentiment regarding a preliminary framework for a US-China import tariff deal. Bitcoin briefly surpassed a two-week high, supported by expectations of this trade truce and the upcoming Federal Open Market Committee (FOMC) interest rate decision. Investor sentiment moved from "fear" to "neutral" after reports of progress, which lifted broader risk appetite. President Trump expressed optimism that a deal would be reached at the upcoming meeting. This positive news helped Bitcoin reclaim the crucial short-term holder (STH) cost basis of about $114,000, a level lost after renewed tariff threats caused the initial $19 billion market crash earlier in October. Furthermore, markets are largely anticipating a 25-basis-point interest rate cut by the Federal Reserve, which also fuels demand for risk assets like crypto.
(Source：Cointelegraph)