Will Crypto See Another Bloodbath? US-China Deal Effect

Key notes

• Cryptocurrency investors are selling despite notable macro developments.
• Top traders are betting big on the potential upside.
• Ethereum investors have raised more than $780 million over the past two days.

The United States has reportedly reached a trade agreement with China, the world’s largest producer.

According to the BBC a report On Thursday, October 30, US President Donald Trump reached an agreement with Chinese President Xi Jinping on tariffs and rare earths at a meeting in South Korea.

While the specific details of the trade deal between the two leading economies are yet to be revealed, the BBC reported that the “fentanyl tariff” has been reduced from 20% to 10%.

The cryptocurrency market witnessed a bloodbath on October 11, as liquidations reached $19.35 billion, after Trump threatened to increase tariffs on China by an additional 100%.

However, with the trade deal, the market is not witnessing a sudden reaction as traders and investors are still showing signs of uncertainty.

Additionally, the US Federal Reserve cut interest rates by 0.25% on Wednesday, October 29, Coinspeaker reported. The Fed also hinted at ending quantitative tightening by December 1.

Lower tariffs and lower interest rates could stabilize global and domestic supply chains, and perhaps increase appetite for high-risk investments, at least in the short term.

When the Fed lowers interest rates, borrowing costs fall, liquidity rises, and investors look for higher-yielding assets, which can also mean relatively higher risk.

Historically, interest rate cuts have pushed money out of bonds and cash and into risky assets like Bitcoin, Ethereum, and technology stocks.

This time, the market went in the opposite direction.

FUD in crypto

The cryptocurrency market capitalization has fallen by 1.4% in the past 24 hours, and is currently hovering at $3.76 trillion, despite the Federal Reserve rate cut, according to CoinMarketCap. Data.

Furthermore, CMC data shows that investor sentiment fell from 42 to 34, indicating fear, uncertainty and doubt.

Total cryptocurrency liquidations rose 53% to $822 million, according to CoinGlass. Data. The majority of the positions surveyed, worth $651 million, are long positions. Traders who were expecting upward momentum.

On the other hand, analyst Ali Martinez posted it on Ethereum

Ethereum
$3899



24-hour fluctuations:
2.4%


Market value:
$470.85 billion



Vol. 24 hours:
$37.60 billion

Investors withdrew more than 200,000 ETH from centralized cryptocurrency exchanges on October 28 and 29.

200,000 Ethereum $ EthereumA value of $780 million was withdrawn from the stock exchanges during the past 48 hours! pic.twitter.com/zI8juUBwg4

– Ali (@ali_charts) October 30, 2025

According to Lookonchain, whales are still betting on Bitcoin

Bitcoin
$110,060



24-hour fluctuations:
2.6%


Market value:
$2.20 T



Vol. 24 hours:
$74.01 billion

And the bullish momentum of Ethereum.

Even though the market is down, many whales are still bullish and buying!

• Trader 0x9553 opened his first position in #Excess fluid – 40x length at 179.59 $ Bitcoin($19.94M).

• New wallet 0x6988, 1.95 million deposited USD/USD on #Excess fluid I opened 25x long at 4743 $ Ethereum($18.71M).… pic.twitter.com/HXf7YfbvoO

– Loconchain (@loconchain) October 30, 2025

A rise in long positions from whales, as Lookonchain notes, is likely to spark positive sentiment among retail investors. However, if long liquidations continue to rise, the cryptocurrency market could dive into another bearish consolidation zone or even a bloodbath.

It is important to note that interest rate cuts and the US-China trade deal are likely to bring inflows into financial markets, including cryptocurrencies.

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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to provide accurate and timely information but should not be considered financial or investment advice. Since market conditions can change rapidly, we encourage you to verify the information yourself and consult with a professional before making any decisions based on this content.

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