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Bitcoin Updates: Can the Malaysia Summit Ease Global Market Tensions Amid U.S.-China Trade Negotiations?

Bitcoin Updates: Can the Malaysia Summit Ease Global Market Tensions Amid U.S.-China Trade Negotiations?

Bitget-RWA2025/10/26 12:28
By:Bitget-RWA

- U.S. and China restart high-level trade talks in Malaysia to ease tensions spilling into global markets and Bitcoin volatility. - U.S. Treasury Secretary Bessent and Chinese VP He Lifeng address tariffs, rare earths, and trade imbalances ahead of a potential Trump-Xi summit. - Unmet 2020 trade deal commitments and Trump's 145% tariffs on Chinese goods have deepened the trade war, destabilizing supply chains and crypto markets. - Bitcoin dropped to $108,000 amid fears of prolonged hostilities, highlightin

This weekend, Malaysia will host renewed high-level trade talks between the U.S. and China, marking a fresh attempt to ease tensions that have impacted global financial markets and digital assets such as

. U.S. Treasury Secretary Scott Bessent is scheduled to confer with Chinese Vice Premier He Lifeng, with the agenda focusing on tariff disputes, rare earth material exports, and trade imbalances. These discussions come ahead of a possible face-to-face meeting between President Donald Trump and Chinese President Xi Jinping later this month, according to a . This marks the fifth in-person negotiation round since 2025, following a temporary agreement that halted new tariffs until November 10, as reported by Turkiye Today.

The urgency of these negotiations is rooted in the shortcomings of the 2020 U.S.-China trade agreement. At that time, China committed to buying an extra $200 billion in American goods and services, but

found that only 58% of those targets were achieved, due to pandemic disruptions and overly ambitious goals. Critics have long argued that the targets were unrealistic, and the Biden administration has been criticized for not enforcing the deal. Since Trump’s return to office, tariffs on Chinese products have soared to 145%, while China has retaliated with 125% tariffs, intensifying a trade conflict that now threatens global supply chains, Turkiye Today observed.

Recent developments include China imposing new restrictions on rare earth exports—essential for technology and defense industries—and the U.S. threatening to impose 100% tariffs on Chinese imports. These actions have created a "risk-off" mood in financial markets, with Bitcoin falling to $108,000 amid concerns over a prolonged trade standoff, according to an

. Crypto market analysts point out that geopolitical uncertainty tends to heighten Bitcoin’s price swings, as investors either seek safer assets or unwind leveraged positions. The sharp downturn in the crypto market on October 24, which coincided with news of the Malaysia negotiations, highlights how sensitive digital assets are to global economic developments, OpenPR noted.

Trump has made trade demands centered on China’s rare earths, fentanyl, and soybean exports, while also looking to strengthen ties with partners like Australia to secure vital minerals, according to a

. A breakthrough in talks could calm markets and relieve pressure on Bitcoin, which has historically performed well during periods of regulatory certainty. Still, the outlook is unclear, as Trump has recently cast doubt on whether the summit with Xi will proceed, a situation described as diplomatically fragile by a recent .

At present, investors are closely monitoring for any signs of easing tensions. A positive outcome could mean lower tariffs, more stable supply chains, and renewed investor optimism, potentially enhancing Bitcoin’s role as a hedge against inflation and geopolitical uncertainty. On the other hand, if negotiations collapse, markets could see increased volatility, with cryptocurrencies likely to experience the most immediate impact, OpenPR cautioned.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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