Finance

Bitcoin’s Dip: How Trump-Xi Trade Talks Triggered a Crypto Sell-Off

Bitcoin fell 4.5% due to profit-taking despite a US-China trade framework consensus.

byAndres Castro

October 30, 2025, 11:25 AM

A futuristic cityscape glows with neon lights, suggesting a vibrant cryptocurrency metropolis at night.

Gleaming towers of digital promise illuminate the night sky in this artist's rendering of Bitcoin City. By MDL.

Executive Summary

Bitcoin dropped by 4.5% to approximately $107,800 on Thursday, despite U.S. President Donald Trump and Chinese President Xi Jinping reaching a trade consensus.

Cryptocurrency investors engaged in profit-taking due to lingering uncertainties about the specific details of the U.S.-China trade deal and potential market volatility.

The downturn in Bitcoin’s price negatively impacted the broader digital asset market, including Blackrock’s iShares Bitcoin ETF (IBIT) and crypto-related companies like MicroStrategy.

The Story So Far

The cryptocurrency market, particularly Bitcoin, experienced a downturn due to investors pivoting to profit-taking amidst lingering uncertainties about the specifics of a trade framework reached by President Donald Trump and Chinese President Xi Jinping, despite the broader positive sentiment the deal initially sparked in other risk assets.

Why This Matters

Despite an initial positive sentiment from a U.S.-China trade framework reached by U.S. President Donald Trump and Chinese President Xi Jinping, Bitcoin experienced a significant dip, demonstrating the cryptocurrency market’s acute sensitivity to global economic and geopolitical uncertainties. This swift profit-taking, driven by lingering ambiguities in the trade deal’s specifics, highlights investors’ cautious stance and their preference for concrete details, leading to a broader downturn across the digital asset ecosystem, including ETFs and crypto-related companies.

Who Thinks What?

Cryptocurrency investors quickly pivoted into a profit-taking mode, attributing Bitcoin’s dip to lingering uncertainties regarding the specific details of the U.S.-China trade deal and potential renewed market volatility.

Broader risk assets initially received a lift from the prospect of easing tariffs following the U.S. President Donald Trump and Chinese President Xi Jinping trade framework consensus.

Bitcoin experienced a significant dip on Thursday, falling by as much as 4.5% to trade around $107,800 by mid-morning in New York. This market movement occurred despite U.S. President Donald Trump and Chinese President Xi Jinping reaching a basic consensus on a trade framework during the APEC summit in Busan.

Market Reaction to Trade Deal

While the prospect of easing tariffs initially provided a lift to broader risk assets, cryptocurrency investors quickly pivoted into a profit-taking mode. This shift was largely attributed to lingering uncertainties regarding the specific details of the trade deal and the potential for renewed market volatility.

Broader Crypto Impact

The downturn in Bitcoin’s price was reflected across the wider digital asset market. Blackrock’s iShares Bitcoin ETF (IBIT) opened Thursday trading 2.5% lower than its closing price on Wednesday. Companies heavily invested in the crypto sector, including Bitcoin miners and MicroStrategy (MSTR), also saw sharp declines at the market open.

Key Takeaways

The cryptocurrency market demonstrated its sensitivity to global economic and geopolitical developments, with Bitcoin experiencing a notable decline despite a broader positive sentiment initially sparked by the U.S.-China trade framework.