Bitcoin Holds Above $107,000 as Investors Watch U.S.-China Trade Developments
Bitcoin continues to hover just above the $107,000 mark this weekend, showing signs of recovery after dipping to a weekly low of $103,660. The world’s largest cryptocurrency has staged a modest comeback, gaining traction alongside several altcoins such as Dash, Morpho, Bittensor, and Aster — all of which surged over 8% in the past 24 hours.
Market watchers point to renewed investor optimism as a key driver behind the rebound. Many are “buying the dip,” taking advantage of lower prices after a sharp correction earlier this month that pushed most digital assets into bear territory. Declines exceeding 20% from recent highs prompted bargain hunters to re-enter the market, betting on a short-term reversal.
Geopolitical factors are also fueling bullish sentiment. Investors are closely monitoring the upcoming meeting between former U.S. President Donald Trump and Chinese President Xi Jinping, scheduled to take place at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea later this month. The hope is that the two leaders might ease escalating trade tensions, which have cast a shadow over both traditional and crypto markets.
Tensions between the two economic powerhouses have intensified in recent months. China’s tariffs on U.S. goods now average more than 32%, affecting virtually all American exports. Moreover, Beijing has taken additional steps to hit back at Washington, including stopping soybean imports from the U.S., restricting domestic firms from using Nvidia chips, and launching an antitrust investigation into Qualcomm. Additionally, China is preparing to enforce export controls on rare earth materials — key components in electronics and defense industries — which could significantly disrupt U.S. manufacturing, given China’s dominance in the sector.
U.S. Treasury Secretary Scott Bessent recently met with Chinese Vice Premier He Lifeng in Malaysia for preliminary discussions and announced plans for further direct talks next week. According to Bessent, the discussions were “frank and detailed,” covering a broad range of trade issues. While no concrete agreements were reached, the resumption of dialogue has bolstered market hopes for a breakthrough.
Former President Trump, meanwhile, has threatened to escalate tariffs on Chinese imports if no progress is made by November 1, with proposed rates starting at 130% — a sharp jump from the current 30% baseline. A potential agreement between the two countries would not only ease market anxieties but could also help dampen inflationary pressures. That, in turn, might encourage the Federal Reserve to maintain or even accelerate interest rate cuts, which would be favorable for risk assets, including cryptocurrencies.
However, not all analysts are convinced that the current crypto rally is sustainable. Some caution that this could be a classic “dead-cat bounce” — a temporary recovery in a declining market that quickly resumes its downward trend. Bitcoin and many altcoins experienced a brief lift after last week’s steep drop, only to slide back again shortly afterward. This pattern raises concerns that the current upswing may lack the fundamental strength to sustain higher price levels in the near term.
Despite the uncertainty, investor sentiment remains cautiously optimistic. Many view the current macroeconomic and geopolitical landscape as a critical test for digital assets, particularly Bitcoin, which has increasingly been seen as a hedge against traditional market volatility and inflation.
Adding to the intrigue, the U.S. government is believed to hold over 327,000 bitcoins, a figure that has sparked widespread debate about its influence on the crypto market. If confirmed, such a holding could provide the federal government with significant leverage over the sector, particularly in times of crisis or regulation.
Meanwhile, institutional adoption continues to grow, with more companies exploring blockchain infrastructure and crypto custody solutions. Innovations in Layer 2 scaling and decentralized finance (DeFi) are also attracting attention, although recent security concerns and protocol compromises have highlighted the need for more robust systems.
The upcoming Trump-Xi meeting could prove pivotal not only for global trade but also for the direction of the digital asset market. A de-escalation in tensions may encourage more capital inflows into crypto, while a breakdown in talks could trigger renewed volatility.
In the broader context, global economic uncertainty, tightening monetary policies in major economies, and ongoing regulatory crackdowns all contribute to an environment where crypto is both highly speculative and potentially rewarding. Investors remain split — some see Bitcoin as a store of value in turbulent times, while others fear a prolonged bear market.
Looking ahead, the crypto market’s next move may hinge on multiple factors: geopolitical negotiations, interest rate decisions, inflation dynamics, and technological developments within the blockchain space. For now, Bitcoin’s ability to hold above the $107,000 threshold will be closely watched as a signal of either resilience or vulnerability in an unpredictable market landscape.