Cryptocurrency defies expectations of US-China trade deal

Morning Minute is a daily newsletter published by: tyler warner. The analyzes and opinions expressed are his own and do not necessarily reflect those of Decrypt. Subscribe to Morning Minutes on substack.

GM!

Today’s top news:

• Major cryptocurrencies rose 3-5% on expectations for a trade deal. BTC$115,500
• Rumble partners with Tether to accept cryptocurrency tips for creators
• Pump Fun acquires Padre and announces snapshot for token holders
• MegaETH releases tokenomics and KPIs ahead of today’s public ICO
• 402x and Farcaster’s CLANKER acquisition sparks AI weekend rally

📈 Cryptocurrency defies expectations of US-China trade deal

The attitude between President Trump and President Xi Jinping has calmed down, and a trade deal appears to be on the way.

And the market loves it, too.

📌What happened

The US and China have reportedly made “significant progress” on a new trade framework, with negotiators hinting at the possibility of gradually lifting tariffs.

Sources close to the talks said the two sides are working toward a November signing date.

It was enough to wipe out risky assets.

• Bitcoin (BTC) rose as much as 5% over the weekend to over $115,000.
• Ethereum (ETH) regains $4,100
• Solana (SOL) breaks above $200

Overall, the market capitalization of cryptocurrencies increased by about $150 billion over the weekend.

Not only that, but crypto is outperforming stocks (so far) as government bonds sell off and gold cools, indicating a rotation from safe-haven assets to risk and growth assets.

🗣️ What they are saying

“Markets were pricing in escalation, not easing. Signs of cooling trade are bullish for risk assets.” – cross border capital

“Bitcoin continues to behave like a high-beta macro exposure, and as global liquidity improves, BTC also reacts.” – QCP Capital Desk Note

“The thaw in the US and China comes at a time when crypto liquidity is already improving, which could set the stage for a tight fourth quarter.” – matrix port research

🧠 Why is it important?

Progress on trade deals is bullish for risk assets, and cryptocurrencies fall right into that category.

If this trade framework is maintained and tariffs are phased out, the following may occur:
✅ New inflows into risk assets
✅ Cryptocurrency allocation increases due to macro funds
✅ Powerful setup for year-end positioning

And if trading momentum holds, this could be the beginning of risk-on rather than the end of the fourth quarter.

Let’s signal the Santa Claus rally a little early.

Currently, there are still some “four-year cycle” sellers to deal with. And it is unlikely that we are completely out of the woods yet.

However, eventually they will run out of coins to sell.

And the bulls will take over.

🌎 Macro Codes and Memes

Some crypto and Web3 headlines that caught my eye:

• The crypto giant is so green that it plagiarizes the news of the US-China trade deal. $115,300 on BTC +2%, $4,140 on ETH +3%, $1,150 on BNB +2%, $199 on SOL +2%
• virtual (+18%), PI (+17%) and ZEC (+13%) lead the way
• gold It fell another 2% to $4,044 as cryptocurrencies and stocks gained support in the rally.
• playing cards SEC Cryptocurrency Task Force Counsel Mike Selig will be named to lead CFTC, according to reports
• rumble Partner with Tether to add Bitcoin chips to creators
• Custodia + Vantage We launched a tokenized deposit network for US banks
• cell We use stablecoins for international transactions via our parent company’s early warning service
• Canada Accelerating the development of a stablecoin regulatory framework

For corporate bonds/ETFs

• Bitcoin ETF There was a net inflow of $90.6 million on Friday, and ETH recorded an outflow of $94 million.
• sharp link Bought another $78.3 million in ETH over the weekend after a month-long drought

with a meme

• meme coin reader It’s green. Doge +1%, Shiva +1%, Pepe +1%, Peng +1%, Bonk +1%, Trump +2%, SPX +1%, Fatcoin -2%
• cranker It has soared more than 400% since its acquisition by Farcaster and is now valued at $115 ($115 million). +80% real this week to $1.45 billion
• Some Solana AI tokens Weekend excitement including PAYAI (+35%) and AVB (+85%)
• chill house 25% recovery to $12 million

💰 Tokens, Airdrops and Protocol Trackers

Here’s a summary of the day’s key token, protocol, and airdrop news:

• fermentation Shared new details about Tokenomics and its new KPI rewards
• pump fun Announced the acquisition of the trading terminal PADRE on Friday and also announced a snapshot of PADRE token holders who will receive a corresponding amount of PUMP
• superfluidity Started on-chain PERP trading for stocks starting from XYZ100 (Top 100 companies in the US stock index)
• countless Exceeded 30 million and announced new announcements in the future

🚚 What’s happening with NFTs?

Here’s a list of the day’s other notable headlines regarding NFTs:

• NFT leader It was slightly greener on the weekend. Punk is +1% at 39 ETH, Pudsey is +3% at 7.3, BAYC is -2% at 7 ETH. Hypurr -1% at 1,230 HYPE
• Infinex loyal customers (+10%) It was a noteworthy move
• Reid Hoffman (LinkedIn Founder) bought Parker CryptoPunk and made it PFP on X
• stubby penguin Announcing partnership with DreamWorks Kung Fu Panda
• NFT strategy token The other strategy (DEEDSTR) rebounded after its launch on Saturday. PNKSTR returns $84 million
• pepe stuffed animal sold for $230,496