Bitcoin Surges Past $113,000 as U.S. and China Reach Trade Agreement

Despite Standard Chartered analysts’ recent claims that a Bitcoin drop below $100,000 was “inevitable,” the world’s largest cryptocurrency rallied sharply over the weekend. On October 24, 2025, Bitcoin climbed above $113,800 following reports that the United States and China had formally committed to a framework agreement reached in Kuala Lumpur. The accord, aimed at resolving key trade disputes, was finalized after discussions led by China’s Vice Minister of Commerce, Li Chenggang. As markets opened for the new week, Bitcoin continued to rise, surpassing $114,000.

Trade Breakthrough Eases Global Tensions

U.S. Treasury Secretary Scott Bessent stated that the latest framework should prevent the United States from implementing 100% or higher tariffs on Chinese imports. The agreement also delays new export controls on China’s rare earth minerals, a sector critical to global technology manufacturing.

The deal marks a notable shift in tone following weeks of escalating trade tensions. U.S. President Donald Trump had repeatedly threatened steep tariffs, while China had considered restricting exports of rare earth elements—moves that rattled global markets. Earlier in October, Bitcoin had dropped below $104,000 after peaking above $126,000 amid uncertainty surrounding these developments.

Crypto Market Regains Momentum

Following the news, the total cryptocurrency market capitalization once again surpassed $4 trillion. Ethereum also rebounded strongly, climbing back above $4,000. Market analysts noted that the easing of geopolitical uncertainty has provided renewed optimism among investors seeking stability in digital assets.

New Tariffs on Canada Stir Mixed Reactions

In a surprising twist, President Trump announced on his Truth Social platform that the United States will increase tariffs on Canadian imports by up to 10%. Despite Canada’s position as one of America’s largest trading partners, financial markets reacted positively, with most indices continuing to climb.

The decision came just two days after Trump declared a suspension of all trade talks with Canada, a move reportedly triggered by a now-paused Canadian TV ad criticizing U.S. tariff policies.

Auto Industry Feels the Pressure

U.S. automakers may face collateral damage from the renewed trade friction. General Motors and Stellantis, both with major assembly operations in Ontario, could experience production slowdowns if tensions persist.

Outlook Remains Cautiously Optimistic

Despite these uncertainties, investor sentiment across U.S. stock markets remains broadly positive. Analysts suggest that the rift with Canada may be resolved as quickly as the one with China, though the rapid swings in trade policy continue to unsettle business leaders. If such volatility becomes the norm, the global economic landscape could grow increasingly unpredictable—posing new challenges for companies and policymakers alike.