Bitcoin Rebounds Above $110k After Trump, Xi Strike One-Year Trade Truce

Bitcoin bounced above $110K after President Donald Trump and China’s Xi Jinping agreed a one-year trade truce, lowering the temperature in a heated confrontation that had threatened to upend the global economy.

The deal eased fears of further escalation in the US-China trade war that rocked global markets earlier this month. Bitcoin, which plunged near $108K before the announcement, recovered on the news to trade at $110,318.60 as of 5:35 a.m. EST, according to data from CoinMarketCap.

BTC price (Source: CoinMarketCap)

Under the pact, China will delay export controls on rare earths for a year, while the US will scrap planned 100% tariffs on Chinese goods and halve a fentanyl-related duty. Still, the truce left many trade disputes unresolved, tempering optimism across risk assets.

Despite Bitcoin’s recovery, crypto sentiment remains cautious. The Crypto Fear & Greed Index plunged to 34, signaling “Fear,” after a 17-point drop from yesterday’s “Neutral” reading of 51. 

Crypto Fear & Greed Index (Source: Alternative.me)

Altcoin leader Ethereum (ETH) dived over 2%, as did XRP, while BNB and Solana recorded only fractional losses. Meme coin Dogecoin (DOGE) dropped over 1%, while TRON (TRX) and Cardano (ADA) saw their prices drop less than 1% and over 1%, respectively. 

Overall, the broader crypto market cap tumbled more than 2% to stand at $3.73 trillion.

Investors Still Fearful As Dalio Warns Of A Bubble

Billionaire hedge fund investor Ray Dalio warned of “a lot of bubble stuff going on” during an interview with CNBC, likening current market conditions to the late 1990s.

That warning came as the Federal Reserve announced a 25bp interest rate cut, bringing lower borrowing costs that could help inflate the bubble Dalio is concerned about.

Dalio drew parallels between the current market landscape and the situations seen in 1998-1999 and 1927-1928 before market crashes hit.

“We certainly must say that whether or not it’s a bubble and when that bubble’s going to burst, maybe we don’t know exactly,” he said, before adding that there is currently “a lot of risk” in the market.