cryptocurrency For the markets, the decrease in tension between China and the USA is extremely supportive. According to the latest WSJ report, the steps needed by risk markets are starting to be taken. While this situation paves the way for further increases, it may whet appetites before the Fed interest rate decision and the Trump-Xi meeting.
US-China Tension
trump and Xi took important steps ahead of the meeting. We shared with you the developments regarding the US Treasury Secretary’s negotiations last week. The anticipated deal announcement comes before Thursday’s big meeting, and today’s leaks suggest we could see more good news on Thursday.
First of all, the USA applied to China for fentanyl restrictions. of tariffs is preparing for the meeting. In addition, efforts continue to balance the increasing port fees in shipments between the two countries. According to sources close to the talks, some customs duties may be withdrawn by the USA.
As a first stage, we will see the US additional tax reduced from 20% to 10%. To do this, China will impose further restrictions on the export of chemicals used to produce the synthetic opioid fentanyl.
Rise in Cryptocurrencies
The worst-case scenario for November 1 was that the US customs duty on China would increase to 155% and additional export restrictions would be put into effect. It was feared that China would do the same and end trade between the two countries. However, recent developments tell us that taxes, which are currently 55%, will drop to 45%.
One of Trump’s goals is to reduce the attraction of sales through second countries by bringing the tax applied to China closer to the 40% level applied to Asian countries. What China needs to do is to postpone new rare earth element restrictions for 1 year. Bessent said this could happen and they were reconsidering the situation. This means that we may see a new agreement between China and the USA for 1 year, not 3 months. Of course, this situation is due to the breaking of short and medium term pressure. of cryptocurrencies allows it to rise faster.
Moreover, within a period of 1 year, China and the USA will have an environment where they can continue negotiations for a more permanent agreement. Therefore, the announcement of such a long-term agreement will increase risk appetite exponentially.
BTC With the influence of recent developments, it maintains 115 thousand dollars and targets 116 thousand dollars.
