Crypto Market Drops Despite US-China Trade Talks
The cryptocurrency market did not improve after US President Donald Trump and Chinese President Xi Jinping met in South Korea. They discussed easing trade barriers on Thursday. Although the meeting was positive, crypto prices fell sharply. Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) each lost more than 3% in 24 hours.
Key Outcomes from the Trump-Xi Meeting
The trade talks ended on a hopeful note. China agreed to resume rare-earth exports under a one-year contract. It will also buy US soybeans and discuss chip deals with NVIDIA. The US reduced tariffs from 57% to 47% and maintained fentanyl tariffs. These moves aim to ease tensions between the two largest economies and stabilize financial markets.
Crypto Market Impact and Fed Chair Comments
Despite the positive trade news, crypto losses continued after Federal Reserve Chair Jerome Powell’s remarks. He said a December rate cut is not guaranteed. The Fed recently lowered interest rates by 25 basis points to 3.75%-4%. Powell mentioned unclear financial data due to the US government shutdown, which could stop further cuts.
Data from CoinGlass shows $812 million in crypto positions liquidated over 24 hours. Long liquidations were $611 million and short liquidations $201 million. In the hour after the Trump-Xi meeting, liquidations hit $224 million, mostly long positions.
The total crypto market cap is now $3.75 trillion, down nearly 3%. Bitcoin trades below $110,000, Ethereum below $3,900, and XRP below $2.55.
