- The US-China trade deal will lower the tariffs, reinstate confidence in the global supply chain, and bring a wave of optimism to the crypto and traditional market.
- The enhanced investor sentiment is also accompanied by the next FOMC meeting and TrumpXi summit, which preconditions the possible market recovery.
- Such positive factors as alignment of lower inflation risks, reduced tension in trade, and enhanced corporate perspectives facilitate the positive climate to the development of the crypto market.
The crypto market gained a fresh wave of optimism after reports emerged of an early trade agreement between the United States and China. The development has eased global market anxiety and strengthened risk appetite among investors heading into the year’s final quarter.
Trade Easing Brings Renewed Confidence
According to Bull Theory, both nations have reached an early understanding on critical trade matters. US Treasury Secretary Scott Bessent confirmed that China is prepared to finalize a deal removing President Trump’s 100% tariffs. If completed, this agreement would mark the most extensive trade de-escalation since April 2025, offering much-needed relief to global markets.
The news has triggered renewed confidence across major financial sectors. The act of de-escalating trade tensions lowers inflation risk and bolsters confidence in global supply chains. Additionally, the crypto space, which has been battered by heavy selling in reaction to October’s tariff shock, is now setting itself up for a recovery as the market mood improves.
Market Sentiment Shifts Ahead of Key Events
The timing of this development is critical. The anticipated Trump–Xi meeting could finalize the remaining trade details, further stabilizing investor confidence. This comes as the Federal Open Market Committee (FOMC) prepares for next week’s meeting, where a more dovish tone is expected from policymakers.
Such a sequence of events is encouraging a “risk-on” environment across equities and digital assets. As fears of prolonged trade tensions dissipated, liquidity that exited the market in recent months is slowly returning. Analysts say this presents a valuable setup for possible escalated growth heading into the last few weeks of 2025.
Economic Catalysts Strengthen Year-End Outlook
Beyond trade progress, the upcoming corporate earnings season for major S&P 500 firms is projected to bring stronger performance outlooks. The positioning of these catalysts is creating a good environment for both traditional and crypto sectors.
As the crypto market is often quite sensitive to macro changes, the potentially lower risks of inflationary pressure, reduced trade barriers, along with a robust outlook for global demand may benefit the crypto industry. If the trade deal goes forward as anticipated, it may be a watershed moment for both crypto and equities as they may be poised for a growth phase.
