Crypto Market Stays in ‘Fear’ Despite US-China Trade Agreement
Investor sentiment in the cryptocurrency sector remains cautious even after a significant diplomatic breakthrough between the United States and China. According to the latest data from the Crypto Fear & Greed Index, the market continues to hover in the “Fear” zone, posting a score of 37 this past Sunday—a modest increase from Saturday’s reading of 33, yet still reflective of investor apprehension.
The slight improvement in sentiment followed a high-profile agreement between US President Donald Trump and Chinese President Xi Jinping, which included the suspension of certain reciprocal tariffs. The White House characterized the deal as a major win for US economic interests, emphasizing its benefits for domestic workers, farmers, and families.
Despite the optimistic tone of the announcement, the cryptocurrency market has not shown a corresponding surge. Analysts suggest that while the agreement provides more geopolitical clarity, its impact on digital assets may take time to materialize. The crypto market has historically reacted strongly to developments in US-China relations, especially during periods of tariff escalations under the Trump administration.
For example, earlier in the year, when Trump announced a temporary 90-day halt on new tariffs, the Fear & Greed Index jumped significantly—from an “Extreme Fear” rating of 18 to 39 in just 24 hours. However, the recent trade deal has yet to replicate that momentum. As of the latest updates, Bitcoin (BTC) is trading at $110,354 and Ethereum (ETH) at $3,895, both showing small gains of 0.26% and 0.84%, respectively.
The market downturn experienced in October still weighs heavily on investor psychology. On October 11, a sudden plunge wiped out approximately $19 billion in market capitalization within a single day, triggered in part by Trump’s threat of imposing 100% tariffs on Chinese goods. The crash has left a lasting impression, with some analysts describing that day as one of the defining “bottom moments” in cryptocurrency history.
Michael van de Poppe, CEO of MN Trading Capital, expressed that the market is still in the nascent stages of a new bull cycle. He noted that although altcoins and Bitcoin are slowly recovering, sentiment remains fragile and heavily influenced by macroeconomic headlines.
Other prominent traders, however, see the trade deal as a long-term bullish catalyst. Ash Crypto described the stability provided by the agreement as “bullish for markets,” while trader 0xNobler went further, calling it “GIGA BULLISH NEWS.” Yet, the optimism has yet to translate into substantial price action or a meaningful shift in sentiment.
The White House confirmed that the suspension of enhanced tariffs on Chinese imports would remain in effect until November 10, 2026. This long-term commitment could create a more predictable backdrop for global markets, including crypto, which often reacts to uncertainty with heightened volatility.
While the Fear & Greed Index remains in negative territory, its slight upward movement could indicate the early stages of a sentiment recovery. Still, many investors remain sidelined, waiting for clearer signs of sustained bullish momentum before re-entering the market.
In addition to geopolitical developments, crypto market sentiment is being shaped by other evolving factors. Regulatory news, institutional adoption, and technological advancements—such as Ethereum’s continued upgrades and Solana’s growing ecosystem—are also influencing investor outlook.
Another layer of complexity comes from traditional finance institutions slowly integrating blockchain-based assets into their portfolios. With the rise of crypto-related ETFs and growing interest from asset managers, market dynamics are becoming increasingly intertwined with global financial systems.
Moreover, macroeconomic indicators, including inflation data, interest rate decisions by the Federal Reserve, and broader risk sentiment in equity markets, continue to play a pivotal role in shaping crypto price action and investor behavior.
In summary, while the US-China trade agreement is a step toward global economic stability, its effects on the crypto market are still unfolding. The current sentiment reflects cautious optimism, with investors closely monitoring whether improved geopolitical conditions can spark a broader recovery across the digital asset landscape.
For now, the market remains in “Fear,” but with several bullish catalysts on the horizon, the landscape could shift rapidly in the coming weeks—especially if Bitcoin and key altcoins begin to break through technical resistance levels and confirm a new upward trend.