Recent developments in U.S.-China trade negotiations have sparked cautious optimism within the crypto community. Although market sentiment remains uncertain, analysts believe these positive diplomatic developments could renew investor confidence and pave the way for a potential bullish phase in the crypto market. Traders are closely monitoring major digital assets such as Bitcoin and Ethereum for signs of stabilization and growth amid the changing geopolitical landscape.
- The Crypto Fear & Greed Index improved slightly, indicating a gradual shift towards more optimistic market sentiment.
- The recent U.S.-China trade deal discussions have influenced the dynamics of the crypto market, with a historical link between trade tensions and crypto volatility.
- Despite recent setbacks, analysts believe the crypto market is still in the early stages of potential bullishness.
- Bitcoin and Ethereum are showing slight gains, but the trade deal has had limited impact on the market so far.
Crypto market sentiment shows signs of recovery amid optimism on US-China trade
Despite continued geopolitical uncertainty, general market sentiment indicators have moved into a slightly positive zone. The Crypto Fear & Greed Index recorded a score of 37 on Sunday, up four points from Saturday’s 33. The modest increase coincided with the White House releasing a detailed statement highlighting the recent trade deal between President Donald Trump and Chinese President Xi Jinping.
Trade trends between the United States and China have been closely monitored by industry participants, as tariff tensions have historically caused large swings in the crypto market. For example, after President Trump announced a 90-day suspension of reciprocal tariffs on April 9, the Fear and Greed Index jumped from “Extreme Fear” (18) to “Fear” (39) within a day, reflecting increased market optimism.
However, recently, President Trump’s threat to impose 100% tariffs on Chinese goods resurfaced fears of a full-blown trade war, leading to a sharp decline in the cryptocurrency market, with more than $19 billion liquidated on October 11th. Despite attempts at recovery, the crypto market continues to face turmoil, with some traders viewing recent lows as a potential “bottom” for future analysis.
Analysts highlight early bullish phase for cryptocurrencies
Market analysts remain optimistic and urge patience as the sector is still considered to be in the early stages of a bull market cycle. Cryptocurrency trader Michael Van de Poppe emphasizes that Bitcoin and altcoins are in the early stages of a broader bullish trend.
Meanwhile, the White House announced an extension of the suspension of increased reciprocal tariffs on imports from China until November 10, 2026, which could provide a more predictable framework for international trade and foster further stability in the crypto market. Given the current situation, traders such as Ash Crypto and 0xNobler expressed bullish sentiment as a geopolitical resolution is favorable for continued market growth.
Despite the minimal immediate impact on Bitcoin and Ethereum, which currently trade at around $110,354 and $3,895, respectively, market participants remain hopeful. These assets have shown modest gains over the past day and continue to garner attention as indicators of broader market health.
Amid rising geopolitical tensions, the trajectory of the cryptocurrency market remains closely tied to international relations, and recent developments point to optimism about future gains in the digital asset space.