After Friday night’s carnage, the crypto market is seeing a slight recovery as both Beijing and Washington send conciliatory messages regarding trade tensions.
China’s Ministry of Commerce said on Saturday night that the rare earth export controls were not a “full-blown ban” and that qualified applications could still be approved. It also stressed that the measures would have “only a minimal impact” on global production and supply chains.
In Washington, Vice President JD Vance said Sunday morning (US time) that President Trump “values the friendly relationship” with Chinese President Xi Jinping and is “ready to be a reasonable negotiator.” But he still said that the US has more cards than China if a trade war breaks out. (China says “I play Go, not cards.”)
Shortly afterward, Mr. Trump posted on Truth Social in a light-hearted tone:
“Don’t worry about China, everything will be fine! Mr. Xi – a very honorable man – just had a bad moment. He doesn’t want the country to fall into recession, and neither do I. The United States wants to help China, not hurt it!!!”
US Vice President Vance
These statements helped the crypto market bounce back. Bitcoin (BTC) recovered to $115,994, up about 4.57% in 24 hours. Altcoins – which were hit harder – also rebounded strongly: Ether (ETH) at $4,181, Solana (SOL) $198.7 and Dogecoin (DOGE) $0.208, up between 6% and 8%. However, this recovery only partially offsets the losses since Trump’s “trade war” statements sent the market plunging on Friday. Over the past week, Bitcoin fell 7%, Ether 8%, XRP and Solana fell 15%, Dogecoin lost 19%.
Green is back in the crypto market today | Source: Coin360.com
Investment analysts and industry leaders remain optimistic
“If President Trump responds and deescalates tensions on Sunday, the market could rebound sharply on Monday. The market reaction to Trump’s tweets remains extremely high,” investment analysts at The Kobeissi Letter said Sunday.
Earlier on Friday, Mr Trump said there was “no reason” to meet Chinese President Xi Jinping at the APEC summit in Seoul, South Korea – scheduled to start on October 31 – in response to China’s announcement of rare earth export controls.
In addition, Trump also announced an additional 100% tax on Chinese goods as a countermeasure to this control plan.
However, Jeff Park, an advisor at investment firm Bitwise, said that a meeting between Trump and President Xi Jinping “will definitely happen.”
“It has nothing to do with tariffs,” Park added. “Trump will attend because he is drawn to the lavish ceremonies, the photo opportunities, and the historical significance – things that will help him etch his name into the history books.”
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