Crypto Eyes Trump–Xi Meeting for Trade Relief

U.S. President Donald Trump is scheduled to visit Asia later this week, according to a recent report by the Associated Press. A lot is riding on this trip, as it could have serious repercussions for the future of the global economy. 

A meeting with Chinese President Xi Jinping is expected to take place in South Korea, where Trump and Xi could finally come to terms with trade agreements.

For the good part of the year, the U.S. and China have been escalating trade tensions in a now six-month-long trade war. It began in April when President Trump announced his “Liberation Day” tariffs, targeting most of the world with sweeping tariffs on goods imported into America. 

While things looked like they had calmed down, albeit partially, around midyear, the trade war came back in full effect after Trump announced an additional 100% tariffs on China, in retaliation for Beijing’s tightening grip on rare earth exports.

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Financial markets across all types collapsed as a result. Crypto was one of the hardest hit by the sudden risk-off sentiment among investors. On the same date when Trump announced additional tariffs on China, the total cryptocurrency market cap went down by nearly 20% — erasing over $819 billion across all cryptocurrencies. 

Since then, bears appear to have taken control of the market. While buyers got some relief during brief rebounds, overall sentiment remains uncertain in the short term. Bitcoin fell to nearly $100k at one point in the last two weeks, only recently being able to reclaim $110k.

The American President appears open to negotiating with China. Earlier this week, Trump spoke about his terms for lowering import tariffs on the country, which included having China back into the American soybean market and also reducing restrictions on rare earth materials.

“I want to be good to China. I love my relationship with President Xi. We have a great relationship,” Trump said aboard Air Force One on Sunday.

The chance for a conciliation between the two leading economies in the world would not only avoid further economic fallout but also offer an invitation for investors to come back to crypto.