- Bitcoin recovered some of its post-Fed slide after President Donald Trump announced a one-year trade deal with Xi Jinping.
- The recovery followed a slump triggered by the Federal Open Market Committee (FOMC) lowering the policy rate but with Fed Chair Jerome Powell downplaying a near-term rate cut.
- The overall impact of the trade news and the Fed decision on the crypto market was limited, with analysts suggesting the positive news may have already been priced into asset values.
Bitcoin recovered part of its post-Fed slide early Thursday after President Donald Trump said talks with Xi Jinping produced favorable outcomes and a one year deal that could be extended.
Speaking aboard Air Force One, Trump said the issues with the rare earth elements were settled and that further roadblocks would be removed, according to a report from The Independent.
That issue refers to China’s restrictions on these elements, which consist of about 17 metals for high-tech manufacturing, including electronics, electric vehicles, defense systems, and semiconductors.
Additionally, Trump added that US tariffs on China would be reduced to 47% from 57%. He mentioned he plans to visit the country in April 2026, and that Xi will travel to the United States afterward, according to Reuters.
Not Much of a Breakthrough For Crypto
On Wednesday, the Federal Open Market Committee (FOMC) lowered the policy rate to a range of 3.75% to 4% and said quantitative tightening will end on December 1. Softer policy typically reduces real yields and supports risk appetite, a backdrop that can aid non yielding assets such as Bitcoin as liquidity returns and investors reallocate from cash.
But it seems the Fed’s decision and Trump’s recent meeting with Xi Jinping (the first in over six years) didn’t do much for the cryptocurrency market. Most analysts believe that the market had already priced in these developments.
Related: Australia’s ASIC Updates Crypto Licensing Rules, Clarifies Bitcoin’s Status
Earlier, Bitcoin had briefly dropped to US$108,000 (AU$167,400), extending a decline from US$113,000 (AU$175,150) to US$110,000 (AU$170,500), as per CoinMarketCap data. This was Jerome Powell downplayed the likelihood of a December rate cut.
Meanwhile, altcoins weakened. XRP and DOGE fell about 4%. Ether, Solana’s SOL, BNB, and Cardano’s ADA declined by as much as 3%. S&P 500 futures traded lower, and the dollar index held near 99.00.
Related: Altcoin ETFs Make Splashy Wall Street Debut as Solana Fund Leads With Record Volume
It all depends on whether or not the US and China can work out a deal. Most importantly, if tariffs are rolled back, then we could see a surge in investors’ risk appetite, which benefits assets like Bitcoin
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