Crypto Ka-Boom! Trump’s Xi Hug Saves the Day 😂

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Markets

What to know:

  • Crypto markets are posting advances on Sunday on eased trade tensions between D.C. and Beijing. (Who knew a bit of diplomatic fluff could turn the virtual wheels? 🤷‍♂️)
  • “The U.S.A wants to help China, not hurt it,” said President Trump in a Truth Social post. (Ah, the art of the presidential pep talk. Next, he’ll tweet peace symbols and emojis for good measure.)
  • The gains, though, don’t come close to erasing the historic declines seen Friday. (Because nothing says “recovery” like still being in the crypto equivalent of a deep funk.)

A modest reversal from Friday evening’s carnage in crypto markets is underway after some calming trade war-related remarks from both Beijing and Washington. It’s like watching two toddlers argue over a toy, then suddenly decide to share it ­­- assuming the toy is a bunch of digital tokens, of course. 😂

The walk-backs began late Saturday when China’s Ministry of Commerce said its rare-earth export controls are not blanket bans, and that eligible applications will continue to receive licenses. The agency further said it expected those controls to have just a “minimal impact” on global production and supply chains. (Minimal? That’s like saying a volcano eruption is just a little hot air. Sure, Jan.)

In D.C. meanwhile, Vice President Vance on Sunday morning said President Trump appreciates his friendship with Chinese Premier Xi Jinping and is willing to be a reasonable negotiator with that country. (Friendship? These guys might as well start a bromance club for world leaders. 🐸)

Shortly after, the president himself took to his Truth Social to lighten the mood: “Don’t worry about China, it will be all fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for this country, and neither do I. The U.S.A wants to help China, not hurt it!!!” (Trump’s idea of therapy: exclamation points and all-caps yelling. Who needs shrinks when you’ve got social media? 🤣)

The news has sparked a bounce across crypto, with bitcoin returning to just above $114,000, higher by about 3% over the past 24 hours. In the far more harder hit alt sector, the moves are more sizable, with ether, solana and all ahead in the 6%-8% area. (Bitcoin’s back? Hold the confetti-it still feels like recovering from a bad breakup where your ex took the kids… and the keys to the kingdom.)

Needless to say, the bounce has erased only a modest portion of the losses since Trump’s trade war threats on Friday tanked markets. Over the past week, bitcoin is down 7%, ether 8%, XRP and SOL 15%, and DOGE 19%. (Ah, the crypto rollercoaster: one day you’re up, the next you’re down, and the whole time you’re wondering why you bought the ticket. 🎢)

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2025-10-12 21:51