On Thursday, a crucial summit between US President Donald Trump and Chinese President Xi Jinping concluded in Busan, South Korea. Initially, the lack of an immediate joint press conference spooked markets, driving Bitcoin’s price down.
However, subsequent remarks from President Trump confirmed significant progress, immediately reversing negative sentiment.
Initial Plunge Quickly Recovered
In opening remarks, Xi said, “The two countries have reached a basic consensus on major concerns and made encouraging progress.” When shaking hands, Trump called him “a tough negotiator.”
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When the two leaders began their talks, Bitcoin’s price consolidated to around $110,000. However, it dropped around 4:00 am UTC, bottoming near $108,000 following the summit’s ambiguous end.
According to the Chinese state media, the meeting lasted an unexpectedly long time, 1 hour and 40 minutes. Upon the summit’s conclusion, President Trump departed for the US aboard Air Force One. Meanwhile, President Xi headed to Gyeongju for the APEC Summit.
Xi is scheduled to remain in Korea until Saturday for further talks. These talks include a South Korea-China summit with President Lee Jae-myung and a China-Japan summit with Prime Minister Sanae Takaichi.
Trump Touts ‘Fantastic’ Deal from Air Force One
The market’s uncertainty dissolved rapidly when President Trump held an impromptu press conference with accompanying reporters aboard Air Force One at approximately 4:40 am UTC.
Contradicting the initial market panic, Trump described his meeting with Xi as exceptionally successful, rating it “12 on a scale of 1 to 10.”
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Apparently, the summit has resolved key trade frictions that had recently triggered crypto market volatility:
- Rare Earth Exports: The threatened Chinese export restrictions on rare earth materials, a major point of friction, appear to have been suspended for one year. Trump confidently stated, “China to continue rare earth exports” and confirmed, “no more obstacles on rare earths.”
- Soybean Imports: Addressing a key concern for Republican constituencies, Trump announced positive commitments to agricultural trade, emphasizing that “soybean deals will begin right away.”
- Fentanyl Precursor Curbs: China also agreed to curb the export of fentanyl precursors. In return, Trump stated the US would reduce the fentanyl-related tariffs on Chinese goods from 20% to 10%. This move will reduce China’s current tariff rate from 57% to 47%.
The results signify a complete reversal from the “Black Friday” market crash, when the US threatened a 100% additional tariff on China. The President also added that Xi is scheduled to visit the US soon, and Trump plans a reciprocal visit to China in April.
Source: https://beincrypto.com/trump-gives-xi-summit-12-out-of-10-but-bitcoin-price-drops/
