The crypto market recorded significant volatility after $150 million worth of long positions were liquidated following the meeting between President Trump and Chinese President Xi Jinping.
The meeting, which focused on economic and trade issues, created uncertainty in the market, thus triggering a sudden wave of selling in crypto assets.
The rapid reaction of traders caused a massive liquidation on most major exchanges.
US President Donald Trump and Chinese President Xi Jinping held a face-to-face meeting at Gimhae Narae Maru International Airport for the first time in six years and four months.
During the meeting, both leaders expressed confidence in the success of the negotiations held, with Trump acknowledging Xi as a firm and experienced leader and negotiator.
Donald Trump, in his speech while speaking on Air Force One, announced that the agreement between Washington and Beijing will be in effect for a year and is expected to be renewed after that period.
He also stressed that the issue related to rare earths has been fully resolved and no more restrictions are imposed on the sector.
The meeting between Trump and Chinese President Xi Jinping also yielded positive results, easing market tensions and helping to rebalance digital asset movements.
Trump also announced that US tariffs on China would be reduced to 47% from 57%. He also confirmed plans for an official visit to China in April, while Xi is expected to visit the US afterwards.
Bitcoin (BTC), which had previously fallen after Fed Chairman Jerome Powell's statement on interest rate policy, stabilized early Thursday.
It briefly fell to $108,000 after falling from $113,000 to $110,000 in the previous session.
XRP and Dogecoin recorded the most significant declines of 4%, while Ether (ETH) was at $3,911.67 with Solana (SOL), Binance Coin (BNB) and Cardano (ADA) each down around 3%.
Overall, crypto assets and non-yielding investments tend to gain support as liquidity increases, with investors shifting from cash holdings to riskier assets and alternative stores of value such as Bitcoin.
