Trump described his meeting with Xi in South Korea as "amazing" and indicated that a trade deal with China is "pretty close." He mentioned agreements on rare earth supplies and agricultural purchases, which have been contentious issues. Additionally, Trump announced a reduction in fentanyl tariffs on China, lowering overall U.S. tariffs to 47% from 57%.
While the positive tone may suggest easing trade tensions, markets are still waiting for specific details on a U.S.-China trade agreement. Although these trade issues do not directly affect the crypto market, shifts in sentiment can influence prices. Bitcoin's recent decline can be traced back to renewed trade tensions earlier this month.
In other news, Mastercard is reportedly in advanced discussions to acquire crypto infrastructure firm Zerohash for between $1.5 billion and $2 billion, signaling a potential increase in mainstream blockchain adoption.
On the broader crypto landscape, the Federal Reserve's cautious comments regarding future interest rate cuts impacted market sentiment. Bitcoin's decline dragged down other cryptocurrencies, with Ether falling 2.7% to $3,915.69, and BNB dropping 0.8% to $1,112.40. XRP and Solana also reported losses, while memecoins saw mixed performances.
The Fed had recently cut interest rates by 25 basis points but expressed concerns about persistent inflation and a prolonged government shutdown affecting its economic outlook.