US-China Trade Deal Reached, Crypto Market Shows Uncertainty

The US and China have reached a trade agreement addressing tariffs and rare earths. Details are limited, but the "fentanyl tariff" has been reduced from 20% to 10%.

Impact on Crypto Market

The crypto market experienced a significant liquidation event, reaching $19.35 billion after earlier tariff threats.
The market remains cautious despite the trade deal, with continued uncertainty among traders.
The US Federal Reserve cut interest rates by 0.25%, potentially increasing risk investment appetite.
Historically, rate cuts shift investments into risk assets like Bitcoin and Ethereum, but this time, markets reacted oppositely.

Current Market Sentiment

The cryptocurrency market cap decreased by 1.4%, standing at $3.76 trillion.
Investor sentiment dropped, indicating fear and doubt, with liquidations rising by 53% to $822 million.
A significant portion of liquidated positions were longs, totaling $651 million.

Whale Activity

Investors withdrew over 200,000 ETH from exchanges recently, worth approximately $780 million.
Despite market downturns, whale investors remain optimistic, opening large long positions in BTC and ETH.

The trade deal and rate cuts could attract financial inflows into cryptocurrencies, although ongoing liquidations might lead to further market challenges.