A Sudden Shift in Tone
Just 48 hours after triggering global market panic, the United States and China have begun to dial back their trade war rhetoric, signaling a potential thaw in relations that could calm both traditional and crypto markets.
On Sunday, China’s Ministry of Commerce released a statement saying it was “ready to strengthen dialogue” on trade issues and “actively consider license exemptions” related to its controversial rare earth export controls. The measures, announced late last week, had fueled fears of an escalating trade war after U.S. President Donald Trump responded with a fresh round of 100% tariffs on Chinese imports.
China’s new tone marks a notable change after months of tension. The ministry emphasized a willingness to “facilitate trade and strengthen supply chains” a move widely interpreted as an olive branch.
Trump Strikes an Unexpectedly Friendly Note
In a surprising turn, President Trump also took a conciliatory tone, posting on Sunday:
The statement contrasts sharply with his remarks on Friday, when he canceled a planned meeting with Chinese President Xi Jinping and announced new tariffs - actions that triggered the largest single-day crypto liquidation in history, wiping out $20 billion in positions.
Now, analysts say this rhetorical reversal could restore investor confidence heading into the week.
Analysts Predict Market Recovery
Financial markets - and especially the crypto sector, which reacted violently to the tariff news - could see a strong rebound if the easing tone leads to renewed trade talks.
Friday’s downturn had seen Bitcoin plunge by over 10%, Ethereum dip nearly 12%, and global equities shed trillions in value amid fears of a renewed U.S.–China economic clash.
Hope for a Trump–Xi Meeting at APEC
While Trump had said there was “no reason” to meet Xi at the upcoming Asia-Pacific Economic Cooperation (APEC) summit in Seoul on October 31, that position now appears to be softening as well.
According to Jeff Park, an advisor at Bitwise Asset Management, the meeting between the two leaders is “guaranteed to happen.”
If confirmed, a Trump–Xi meeting could help stabilize global trade relations, ending months of market volatility and reversing some of the tariff-driven damage to both economies.
Crypto Markets Watch for Relief Rally
Following Sunday’s diplomatic turn, crypto markets have already shown signs of stabilization. Bitcoin rebounded to $115,000, while Ethereum surged past $4,100, reflecting renewed optimism among traders.
Analysts believe this latest diplomatic detente could mark the start of a “relief rally” across risk assets, similar to the one seen after previous U.S.–China trade disputes cooled.
For now, traders are keeping a close eye on APEC, where a face-to-face meeting could serve as a symbolic reset for global markets - and perhaps, for crypto sentiment as well.
