Trump Tariffs: Secretary Bessent Declares ‘Fantastic’ Trump–Xi Talks, Bitcoin Breaks $113,000

Bitcoin (BTC) has climbed above $113,000 as optimism grew ahead of President Donald Trump’s meeting with Chinese President Xi Jinping. The rally coincided with remarks from U.S. Treasury Secretary Scott Bessent, who said the two leaders now have “the framework” for a productive discussion.

Optimism Ahead of Trump–Xi Meeting Fuels Bitcoin Rally

Bessent told NBC’s Meet the Press that the talks will be “fantastic for U.S. citizens, for U.S. farmers, and for our country in general.” His statement came just hours before the meeting, which investors see as a key step toward easing global trade tensions.

The upbeat tone helped strengthen broader market sentiment, with BTC price gaining 1.62% over the last 24 hours, according to TradingView. The leading cryptocurrency traded around $113,479 after surging from its previous close of $111,668.

Traders Bet on Fed Rate Cuts as Liquidity Expectations Rise

This improving sentiment coincides with rising expectations of monetary easing. According to CME Group’s FedWatch data, markets now assign a 98.3% probability of another Federal Reserve rate cut. The move is expected to take place by the October 2025 meeting.

The information indicates that many now believe that U.S. interest rates will be lowered further than the current 400-425 basis points. This will also indicate that the market has turned towards easing. These expectations are considered a liquidity force for risk assets, especially Bitcoin.

Fresh Trade Momentum Adds to Bitcoin’s Bullish Boost

According to a Bloomberg report, top U.S. and Chinese trade negotiators reached a preliminary consensus on a wide range of economic issues. This clears the way for Presidents Trump and Xi to finalize a sweeping trade deal later this week.

The two sides reportedly agreed on contentious points such as export controls, fentanyl regulation, and shipping levies. The move marks the most significant progress since tensions peaked earlier this month.

Bessent said he expects Trump’s earlier threat of 100% tariffs on Chinese goods was “effectively off the table.” These developments helped stabilize market expectations that had been rattled by the prospect of another tariff escalation.

Chinese trade envoy Li Chenggang also confirmed both sides reached consensus on fentanyl and port service fees. This signals a softening tone from Beijing after weeks of heated exchanges.