BTC Drops, Then Pops, as Trump Lowers China Tariffs

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email BTC Drops, Then Pops, as Trump Lowers China Tariffs However, bitcoin and other non-yielding assets may benefit in the coming months as liquidity returns and investors rotate out of cash-heavy positions into growth and alternative stores of value. By Shaurya Malwa , Omkar Godbole Updated Oct 30, 2025, 6:03 a.m. Published Oct 30, 2025, 5:25 a.m. What to know : Bitcoin fell to $108,000 after the Fed's decision and a silent meeting between Trump and Xi in South Korea. Major cryptocurrencies like XRP and Dogecoin saw losses, with futures tied to the S&P 500 also trading lower. The Fed's policy shift towards easier financial conditions may benefit crypto markets, but geopolitical factors remain crucial. Bitcoin reversed some of the post-Fed losses early Thursday after the meeting between President Donald Trump and his Chinese counterpart Xi Jinping yielded favourable outcomes. Speaking aboard Air Force One, the US president was also reported as saying it was a one-year agreement that would be extended. Trump also said the rare earths issue has been settled and there would be no more roadblocks on them. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . Trump also said US tariffs on China would be lowered to 47% from 57%. He said he would be going to China in April and that Xi would come to the US at some stage after that, in comments carried by Reuters. BTC briefly fell to $108,000, extending the overnight decline from $113,000 to $110,000, which was triggered by Federal Reserve Chairman Jerome Powell downplaying the certainty of a rate cut in December. XRP and DOGE $ 0.1913 led losses among majors with a 4% slide. Ether ETH $ 3,911.82 , Solana’s SOL, BNB and Cardano’s ADA showed losses as much as 3%. Futures tied to the S&P 500 also traded lower while the dollar index consolidated at around 99.00 holding on to overnight gains. According to the BBC, Trump has left South Korea, without announcing the outcome of his talks with Xi. "They shook hands at the end of the meeting before departing," the BBC report said. The bar of expectations was set high after Trump said early this week that both nations are close to reaching a trade deal. Trade tensions ramped up recently after Trump threatened to impose 100% tariffs on Chinese goods in response to Beijing's decision to strengthen its grip over rare earth exports. Earlier on Wednesday, the U.S. central bank’s Federal Open Market Committee lowered its benchmark overnight borrowing rate to a range of 3.75%-4%. The Fed added it would be ending the reduction of its asset purchases – a process known as quantitative tightening – on Dec 1. The twin policy shifts land squarely in crypto’s wheelhouse. A lower benchmark rate at 3.75%–4% signals the beginning of easier financial conditions after two years of restraint, softening real yields and supporting risk appetite. Bitcoin and other non-yielding assets tend to benefit as liquidity returns and investors rotate out of cash-heavy positions into growth and alternative stores of value. Ending balance sheet runoff on December 1 effectively reintroduces net liquidity to the system, easing pressure on banks and improving market depth across risk assets. That environment may spur risk-taking behavior among crypto traders and renewed leverage in derivatives markets. The bigger swing factor remains geopolitics, however. If the U.S.-China trade deal solidifies and tariffs are further rolled back, global risk sentiment could surge, reinforcing the Fed’s dovish tone and extending Bitcoin’s rebound beyond $115,000. But if talks unravel, investors may unwind fresh longs as the dollar firms and volatility spikes again. As such, easier monetary policy and easing trade friction form a rare alignment that supports crypto markets into November — though optimism still hinges on whether this “soft landing” narrative holds once liquidity truly returns. More For You OwlTing: Stablecoin Infrastructure for the Future By CoinDesk Research Oct 16, 2025 Commissioned by OwlTing Stablecoin payment volumes have grown to $19.4B year-to-date in 2025. OwlTing aims to capture this market by developing payment infrastructure that processes transactions in seconds for fractions of a cent. View Full Report More For You Crypto Traders Take on $800M Liquidations as Fed’s Caution Sparks ‘Sell-the-News’ Reversal By Shaurya Malwa 3 minutes ago Large clusters of long liquidations can signal capitulation and potential short-term bottoms, while heavy short wipeouts may precede local tops as momentum flips. What to know : Bitcoin experienced significant volatility, falling to nearly $108,000 before rising above $110,000, with $817 million in leveraged futures liquidations. The Federal Reserve's 25-basis-point rate cut was followed by cautious remarks from Chair Jerome Powell, impacting market optimism. Analysts suggest that while short-term volatility persists, macroeconomic conditions may support Bitcoin's rise if liquidity increases as expected. Read full story Latest Crypto News Crypto Traders Take on $800M Liquidations as Fed’s Caution Sparks ‘Sell-the-News’ Reversal 3 minutes ago XRP Rejects $2.67 Breakout in Risk of Deeper Pullback as Fed Cuts Cause Bitcoin Slide 36 minutes ago Asia Morning Briefing: What's the Real Use for a Yen Stablecoin? 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