The United States and China are reportedly close to finalizing a framework agreement on key trade issues following working-level discussions that ended Sunday in Kuala Lumpur, Malaysia. The breakthrough signals a temporary easing of tensions between the two economic powers. Both sides are reportedly considering a one-year delay in China’s export controls on rare earth materials — a major friction point — in exchange for the US postponing its planned 100% tariff hike on Chinese imports.
As part of the negotiations, China agreed to expand its imports of US soybeans and agricultural goods, while Washington will review easing certain export restrictions and lowering port fees imposed on Chinese shipments. The news sparked an immediate rally in cryptocurrency markets, with Bitcoin climbing 1.62% to $113,450 as of 14:00 UTC. Altcoins such as HYPE (+6.67%) and WLFI (+7.33%) also recorded strong gains amid renewed investor optimism.
Over the past week, Bitcoin surged 6.07%, reclaiming the $113,000 level, while Ethereum (ETH) rose 4.52% and Solana (SOL) advanced 5.94%, according to CoinGecko. On-chain data from Santiment revealed that large investors, or “whales,” have accumulated over 218,000 ETH (approximately $870 million), reflecting growing confidence as geopolitical risks subside.
Positive sentiment has also been bolstered by industry developments. The REX-Osprey XRPR, the first spot XRP ETF in the US, surpassed $100 million in AUM within a month, while JPMorgan announced plans to accept BTC and ETH as loan collateral — a milestone in institutional crypto adoption.
Looking ahead, investors are focused on two key events: the Federal Reserve’s FOMC meeting on Wednesday, where a 0.25% rate cut and potential end to Quantitative Tightening are anticipated, and Thursday’s APEC Summit featuring US President Donald Trump and Chinese President Xi Jinping. Tech earnings from Apple and Amazon later this week could further sway market sentiment.
