Key Points:
- U.S. President Donald Trump confirmed a meeting with Chinese President Xi Jinping at the Asia‑Pacific Economic Cooperation summit (APEC) on October 31 in Seoul, signalling a possible easing of U.S.–China trade tensions.
- The confirmation triggered a rise in major cryptocurrencies: Bitcoin (BTC) jumped roughly 2 %, while Ethereum (ETH) and BNB each gained ~3.5 %, and Solana (SOL) surged by nearly 4 %.
- The crypto market had previously undergone a sharp sell-off following Trump’s earlier threat of 100 % tariffs on Chinese imports, an event that triggered over US$19 billion in liquidations.
- Investor sentiment, as measured by the Crypto Fear & Greed Index, had dropped to 22 (“Extreme Fear”)—but hopes of détente between the U.S. and China appear to have eased some of the pressure.
- While the rally provides near-term tailwinds, analysts caution that geopolitical risk remains high and the bounce may not yet mark a full trend reversal; the risk of a “dead-cat bounce” remains.
1. The Trigger: A Summit on the Horizon
U.S. President Donald Trump, in an interview with Fox News, confirmed his upcoming meeting with Chinese President Xi Jinping at the APEC summit in Seoul on October 31. He remarked:
“We’re going to meet in a couple of weeks. We’re going to meet in South Korea, with President Xi and other people, too.”
He described Xi as “a very strong leader… a very amazing man… it is an amazing story,” and added: “I think we’re gonna be fine with China, but we have to have a fair deal. It’s going to be fair.”
This marks a shift from previous hawkish rhetoric—only days earlier, Trump had dismissed any reason to meet Xi and had announced additional tariffs on China. That earlier shift sent shock waves through the markets.
Beyond the optics, the summit carries real implications for supply chains, particularly around strategic materials like rare earths, which China controls in large part. As one analysis pointed out, the standoff is less about traditional tariffs and more about “rare earths that power magnets, semiconductors, missiles, and every machine that hums beneath the digital surface.”
For crypto market participants, the prospect of de-escalation offers a relief valve on one of the major macro risks affecting risk assets: a renewed full-blown U.S.–China trade war.
2. Immediate Market Reaction: Crypto Bounces Back
The confirmation of the meeting was swiftly followed by positive moves in крипто markets. According to several sources:
- Bitcoin rebounded from a weekly low of about US$103,660 to above US$107,200 in one snapshot, as traders anticipated easing tensions.
- Across the board, ETH, BNB and SOL posted gains of roughly 3.5-4 %.
- One commentary noted that after weeks of “Extreme Fear”, investors appear to be “buying the dip” as the tail risk of trade escalation temporarily recedes.
From a technical perspective, the bounce comes after a period of elevated risk and substantial liquidations. Earlier in October, when Trump threatened sweeping tariffs and export controls, crypto saw one of its largest ever liquidation events—over US$19 billion in positions wiped out.
What’s notable is that the rally is not just confined to Bitcoin—all major coins are participating. That suggests the move is being driven more by sentiment and macro flows than by idiosyncratic coin-specific events.
3. Why This Matters for Crypto and Blockchain Investors
For readers who are scouting new crypto assets, looking for emerging revenue streams, or exploring practical blockchain applications, the geopolitical backdrop provides several actionable insights:
A. Macro Risk Drives Crypto More Than Many Realize
This episode underscores that crypto markets can be significantly impacted by geopolitics—even when the core protocols (Bitcoin, Ethereum, etc.) are unrelated to treaty-negotiations or tariff schedules. Unexpected announcements or escalations can trigger mass liquidations—something we saw with the US$19 billion crash. Investors in crypto therefore must track not only blockchain/tech news but major macro and geopolitics.
B. Sentiment and Leverage Are Key Amplifiers
The severity of the recent market move was tied to over-leverage, thin liquidity, and exposure to derivatives. When the trade war risk spiked, the liquidation cascade was massive. When sentiment improves, the reverse can happen quickly. For practical investors, that means managing leverage, watching funding rates (for futures), and being alert to macro catalysts that could shift sentiment rapidly.
C. Emerging Opportunity: Altcoins and On-Chain Infrastructure
With crypto risk assets rallying, this could provide an entry opportunity for promising altcoins and blockchain projects—especially those with strong fundamentals or use-cases that could benefit from renewed institutional interest. Given the backdrop, projects around supply-chain, tokenised commodities, and geo-economically sensitive resources (e.g., rare earth tokenisation, crypto for trade finance) might draw extra attention.
D. Blockchain Use-Cases in Geopolitics and Supply Chains
The rare-earth / strategic-materials gambit between the U.S. and China highlights that the “real economy” of tomorrow may increasingly intertwine with blockchain solutions: tokenisation of commodities, immutable supply-chain records for critical materials, cross-border trade finance using crypto rails, etc. For practitioners, this suggests that blockchain projects which align with real-world economic chokepoints may have outsized growth potential.
4. Risks and a Word of Caution
While the bounce is encouraging, there are several caveats to keep in mind.
• The rally may be transient
Some analysts warn this could simply be a “dead-cat bounce” — a temporary rebound following steep losses, rather than a sustained trend reversal. Unless macro fundamentals improve materially (e.g., a meaningful U.S.–China deal, better inflation/control prospects), risk assets including crypto may remain vulnerable.
• Geopolitics remains unpredictable
Even though the meeting is scheduled, history cautions that such summits often produce limited concrete results. A prior Trump–Xi call earlier this year produced almost no market reaction. A mis-step, renewed tariff threat, or fresh export controls could instantly reverse sentiment.
• Leverage still lurks
The systemic risk of leveraged derivatives remains high. The headline US$19 billion liquidation earlier this month shows how much risk there still is in the system. A surprise negative news event could quickly trigger another cascade.
• Fundamental crypto factors still matter
While macro sentiment is important, underlying blockchain-specific factors remain pivotal: regulatory changes, protocol upgrades (for example, Ethereum layer-2s, Solana network developments), tokenomics, developer activity. Investors should still evaluate projects on these fundamentals—not purely on macro tailwinds.
5. Strategy for Crypto Explorers & Practical Blockchain Users
Given this environment, how might one approach the market or blockchain application space?
✅ Focus on quality:
Stick with established protocols and high-quality layer-1s/2s (Bitcoin, Ethereum, Solana) for the macro play. For higher risk/higher reward, investigate altcoins with real-world use-cases aligned with supply-chain, tokenisation, or geopolitically-sensitive infrastructure.
✅ Risk manage your exposure:
Avoid excessive leverage. Keep derivatives exposure moderate or hedged. Monitor funding rates and open interest for signs of speculative froth.
✅ Track macro catalysts:
Set watches for major events: U.S.–China trade negotiations, central-bank interest-rate decisions, inflation data, export control announcements (especially relating to rare earths or high-tech). These can shift sentiment fast.
✅ Apply blockchain-practical lens:
For those using blockchain in real business: explore how tokenisation of real-world assets (including strategic materials), transparent supply-chain ledgers, and cross-border payment rails might gain traction in a less-tense trade environment. If trade-friction reduces, efficiency gains from blockchain become more attractive.
✅ Have an exit/entry plan:
Given the risk of reversal, define clear metrics: e.g., if Bitcoin drops below US$100 k again and macro risk spikes, consider trimming; if a clear U.S.–China framework is announced, consider accumulation.
Conclusion
The announcement by President Trump of a scheduled meeting with President Xi Jinping at the APEC summit on October 31 has provided a much-needed relief for the crypto markets, triggering a rebound in major assets and easing some of the extreme fear that had gripped investors. For those looking for new crypto opportunities or practical blockchain use-cases, the event underscores how deeply intertwined geopolitics and digital assets have become.
However, this is not a guarantee of smooth sailing ahead. The rally may be temporary, and the undercurrents of risk—from leverage in the derivatives markets to unpredictable state-level behaviour—remain potent. For strategic investors and blockchain practitioners alike, the moment is one of opportunity, but one that demands discipline: manage risk, watch macro catalysts, and focus on underlying fundamentals.
In short: as the world’s two largest economies step back from the brink, crypto and blockchain markets may get a breath of fresh air—and savvy participants can use this window to position for the next wave. But remain vigilant: the next big move may come from geopolitics, not protocol upgrades.
