The easing of China-US trade relations stimulates a general rise in the crypto market: Bitcoin returns to $115,000, is confidence in long positions returning?

With the easing of tensions in US-China trade, the cryptocurrency market has seen a significant boost, indicating that concerns over a new round of tariff wars are fading. Following the conclusion of working-level talks in Kuala Lumpur, Malaysia, signals have emerged that the two sides have reached a framework agreement on trade issues, prompting the price of Bitcoin (BTC) to immediately rise by about 2%, currently returning above $115,000. This market rebound is attributed not only to the alleviation of macro tensions but also to positive news regarding XRP ETF's Assets Under Management surpassing $100 million and JPMorgan accepting BTC and Ether (ETH) as loan collateral. Market attention is now shifting towards this week's APEC summit and the Fed's FOMC meeting, which suggests that market volatility may further intensify.

Progress in China-US Dialogue Stimulates Surge in Crypto Assets Prices

The United States and China concluded working-level trade talks in Kuala Lumpur, indicating that a framework agreement involving significant trade issues is nearing completion. This positive signal instantly sparked optimism in the crypto market.

Trade friction alleviation: Tariff threats temporarily lifted

According to reports, China and the United States are considering postponing China's export controls on rare earth materials for one year in exchange for the United States temporarily delaying the implementation of the previously threatened 100% additional tariffs on Chinese goods. Additionally, China has agreed to increase imports of U.S. soybeans and agricultural products, while the United States has promised to review relaxing certain export controls and adjusting port fees imposed on China.

After the news broke, the price of Bitcoin (BTC) immediately rose by about 2%. As of Sunday, Coordinated Universal Time (UTC) 14:00, the trading price was reported at $113,450, with a daily increase of 1.62%. The market reacted swiftly to the threat of 100% tariffs being lifted, which had been a significant constraint on asset prices. Altcoins such as HYPE (+6.67%) and WLFI (+7.33%), which were dragged down by geopolitical uncertainty, also saw significant increases. Over the course of a week, Bitcoin has cumulatively risen by 6.07%, reclaiming the $113,000 mark. Ethereum (ETH) rose by 4.52%, while Solana (SOL) increased by 5.94%.

Whale Entry Accumulation: The Return of Institutional Confidence

On-chain data has captured signals of large crypto investors (i.e., whales) positioning themselves ahead of a rapid shift in geopolitical sentiment.

Ethereum whales: Buy the dip strategy emerges

According to data from the Santiment on-chain analysis platform, large wallets holding between 100 and 10,000 Ethereum (ETH) have increased their holdings by more than 218,000 ETH in recent days, worth nearly $870 million. This increase represents about one-sixth of what these whales sold during the previous market downturn, indicating that market confidence is steadily recovering. This “buying on dips” behavior suggests that savvy investors are anticipating an improvement in the geopolitical situation and the formation of a market bottom.

Positive Industry Benefits Become the Focus Again

The industry, previously overshadowed by geopolitical turmoil, is now back in the spotlight.

XRP ETF performs well as Wall Street giants actively position themselves.

The news that REX-Osprey XRPR (the first spot XRP ETF in the United States) has surpassed 100 million USD in Assets Under Management (AUM) within a month is reigniting market expectations for the upcoming approval of altcoin spot ETFs. Boosted by this, XRP has achieved a rise of 11.22% this week.

More significantly, JPMorgan announced that its institutional clients can use BTC and Ether (ETH) as loan collateral. This move is seen as a landmark step for Wall Street's most traditional bank to finally embrace digital assets, greatly enhancing the mainstream financial status and liquidity of crypto assets.

This Week's Outlook: FOMC and APEC Summit Dominate the Market

Despite the market sentiment leaning towards optimism, the key economic and diplomatic events coming up this week will still dominate the market.

The market widely expects the Fed to cut interest rates by 0.25%, but the focus will be on whether the Fed announces an end to quantitative tightening (QT), which will directly affect market liquidity. In addition, the face-to-face summit between the leaders of China and the United States on Thursday will be the most important diplomatic event of the week, and its outcome will directly impact the trend of macro risk assets (including Crypto Assets). Investors should also closely monitor the earnings reports of major tech companies, as the recent correlation suggests that a significant sell-off of tech stocks in the U.S. may negatively impact Bitcoin prices.