Xi Jinping and Donald Trump meeting: Tariff Talks In South Korea: Will It Sink Or Save Crypto

After the Presidential meeting between Donald Trump and Xi Jinping held in South Korea, the President of the US, Donald Trump, expressed positive notes on the meeting. The comments from the Chinese authorities are yet to come, but the overall signal remains highly positive, with the possible lift of the 100% tariff and the roadblock for essential minerals and computer chips being removed.

Since the final idea about the meeting is yet to arrive, this moment can only be used to analyze how the meeting would affect the crypto world if it went straightforwardly or sideways.

Reasons For The Xi Jinping and Donald Trump meeting

Earlier in October, as part of strengthening the American economy by bringing back production, the US President Donald J Trump had announced a 100% tariff application on all produce imports from China. The core reason for this tariff was to promote production and re-industrialization in America.

The ban on China’s purchase of high-power computational chips from NVIDIA by the US government was another action taken against China. China’s dream of AI automation and the digital Yuan would take a hit from this.

China retaliated to these actions with a 34% tariff hike, halting the rare earth metal export, and stopping the soybean import from the USA.

These US-China tensions had a catastrophic effect on the crypto market since the global economy perceived this as an impending trade war that could escalate further.

It is under these circumstances that the leaders of the two clashing global powers decided to have a meeting in South Korea to discuss terms. The announcement of the meeting revived the crypto market a little. For most of the anticipatory part till the meeting on 30th October, the market trend was largely sideways and stabilized.

The Bear run that had left the entire month of October in distress was finally coming to an end.

Latest Updates from Xi Jinping, Donald Trump’s meeting

What Does This Mean For Crypto

Even after the meeting, the exact details were not published. The results of the deal itself are largely an ‘expected’ result based on the comments of the US President.

In such confusing scenarios, a positive sentiment, which was the expected result, may be muted in the market. The 1.1% fall of Bitcoin and the 0.9% fall of Ethereum point to this aspect post the meeting.

Since the fall, both assets have made a comeback, according to the data from TradingView charts. They are stabilizing near the previous close at the moment. This is yet another confirmation of the fact that the meeting and its obscured results have little to no effect on the market apart from a short period of bear run, which was recovered by the bulls.

Reasons Behind The Present Crypto Market Behavior

Since the meeting seems to have only a little impact on the crypto market, the market is obviously waiting for other macroeconomic conditions to shift, and is stuck on unresolved regulatory issues.

China has not mentioned anything about the regulatory barricades it has put up against cryptocurrencies. This regulatory uncertainty could turn the tide against the crypto market. Even though the trade meeting was over, crypto remains a speculative asset, so unless more clarity is obtained from the meeting’s particulars, it may not have a significant effect on the crypto market.

Investors still do not seem to be convinced by the meeting, and the overall sentiment is one of confusion and fear. The Fear & Greed index shows a value of 39, indicating uncertainty and fear among traders.

End Note – Will This Sink or Save Crypto

This meeting, unless its full details are officially published, will not affect the crypto market by much. So it will no,t at the moment sink or save the market. Any signs of negative sentiments arising from the meeting may drastically sink the crypto market since the already dominant sentiment is fear.

It is worth noting that regulatory issues and a neutral sentiment to the much-awaited meeting results have pushed the Fear & Greed index from neutral yesterday to fear today. So, at the moment, nothing can be decisively said about the conditions of the crypto market.

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