“Markets Surge on Optimism for Revived Trade Talks”

Today in cryptocurrency, US and Chinese officials indicate a reduction in trade frictions, Bitcoin is revisiting the golden cross, a favorable formation that has historically preceded previous explosive surges. Meanwhile, cryptocurrency traders engage in their “standard justification” behavior by attributing Trump’s tariffs as the cause for the market downturn.

US and China officials indicate reduction in trade frictions

Officials from the United States and China softened the intense dialogue surrounding trade regulations after hostilities between the two nations escalated this week due to China’s restrictions on rare earth exports and US President Donald Trump’s declaration of an additional 100% tariff on China.

China’s Ministry of Commerce indicated a readiness to engage in discussions regarding the rare earth export control proposal and other trade matters on Sunday, coinciding with a statement from Trump. In a Sunday post on Truth Social, Trump stated:

“Don’t worry about China, everything will turn out fine! Highly regarded President Xi just had an unfortunate moment. He doesn’t desire economic downturn for his nation, and I don’t either. The USA intends to assist China, not harm it!!!”

Market experts asserted that Trump’s signs of de-escalation could invigorate financial markets on Monday, potentially reversing the price drop that affected cryptocurrency markets over the weekend.

Bitcoin revisits golden cross, a breakthrough could trigger significant surge: Analyst

Bitcoin is revisiting the “golden cross,” a favorable technical configuration that has historically signified rallies, according to cryptocurrency market analyst Mister Crypto.

In a Sunday post on X, the analyst released a chart highlighting that Bitcoin’s (BTC) previous golden crosses resulted in gains of 2,200% in 2017 and 1,190% in 2020. With BTC currently lingering around $110,000, he suggested that maintaining above this threshold could spark yet another explosive movement.

“The setup appears remarkably robust,” he wrote, adding that a confirmed breakout could “truly skyrocket” Bitcoin’s price in the forthcoming weeks.

A golden cross is a favorable trading signal that occurs when a short-term moving average, typically the 50-day, crosses above a long-term moving average, often the 200-day. It indicates that momentum is transitioning from bearish to bullish, suggesting that prices could begin to ascend.

Crypto traders attribute Trump’s tariffs in search of ‘singular event’: Santiment

Cryptocurrency retail traders were swift to attribute Friday’s overall cryptocurrency market decline to US President Donald Trump’s announcement of a 100% tariff on China, as they frequently seek something to blame during downturns, according to Santiment.

Analysts, however, argue the cause of the market decline is more complex than the tariffs alone.

“This is typical ‘justification’ behavior from retailers, who feel the need to link a singular event to the reason for a drastic downturn in crypto,” Santiment noted in a report on Saturday.

“Following the crash, the crowd quickly rallied to reach a collective agreement on what the decline could be ascribed to,” Santiment commented, referencing the surge in social media discussions related to both the cryptocurrency market and US-China tariff issues.