Bitcoin and Ethereum surge: Was the customs clash just a misunderstanding?

After U.S. President Trump announced additional tariffs on China, the crypto market panicked.

After U.S. President Trump announced additional tariffs on China, the crypto market panicked. Now there seems to be a reversal.

After the biggest crypto crash of all time, Bitcoin and Ethereum shot up again on Sunday afternoon. The reason: according to recent reports, the entire October 10th customs crash was one big misunderstanding between Trump and Chinese President Xi Jinping.

Sources from China now say that the new controls on rare earth metals do not mean a complete export ban, and applications that meet the rules will be approved. The largest crypto liquidation in history and a loss of $2.5 trillion in market capitalization on the S&P 500 could thus be traced back to a big misunderstanding.

American Vice President JD Vance continued the de-escalation after China's clarifying statement. He said Sunday: “We value the friendship between Trump and Xi. President Trump hopes the U.S. will not have to deploy any ‘leverage’ against China.” He also stated that Trump is willing to “negotiate with China in a reasonable manner.”

Around 6:45 p.m. the President himself spoke: “Don’t worry about China, it’s all going to be fine! President Xi just had a bad moment. He doesn’t want a depression for his country, and neither do I. The U.S. wants to help China, not harm it!”

Ethereum again hit the $4,100 mark, and Bitcoin rose above $114,000. As expected, the altcoin market jumped sharply higher as well.

Not too long ago, China had threatened countermeasures. Beijing urged Washington to correct its “wrong conduct” and to respect the results of earlier talks. If the U.S. sticks to its stance, China would take decisive action to protect its rights and interests. They did not want a new trade war with the U.S., but they did fear one.