#What Agreements Were Reached between China and the US?
In recent trade discussions held in Kuala Lumpur, China and the United States achieved significant agreements. These agreements focus on improving communication channels to address export controls and tariff issues, essential for stabilizing trade relations between both nations.
#How Did These Agreements Impact Bitcoin?
Following the announcement of a framework agreement by China’s Vice Minister of Commerce, Bitcoin surged to $113,829. The arrangement is intended to prevent the imposition of steep tariffs on Chinese goods, particularly a 100% tariff that had previously been threatened. Furthermore, it aims to delay new export controls on China's rare earth minerals, which are critical for various technologies.
This breakthrough is particularly notable given the rise in trade tensions that had recently shaken markets. With former President Trump's warnings of significant tariffs and China’s market restrictions on rare earth exports, this agreement brings a renewed sense of stability. Earlier, Bitcoin briefly dipped below $104,000 amid this climate of uncertainty, reflecting the volatile nature of digital assets.
#What Does This Mean for the Crypto Market?
Following the positive trade developments, the overall cryptocurrency market cap increased to $3.9 trillion, marking a 2% rise in a single day, according to data from CoinGecko. Bitcoin continued to gain traction, moving closer to $114,000, while Ethereum rebounded over $4,000. Other digital assets, such as Solana, also registered gains, indicating a broader recovery within the crypto sector.
Among the standout performers during this period were various coins, including Zcash's ZEC, Pump.fun's PUMP, Hyperliquid's HYPE, and World Liberty Financial's WLFI, indicating a strong interest in diverse cryptocurrency investments.