Crypto markets are starting to show a modest recovery after a sharp drop on Friday afternoon, following several conciliatory statements from Washington and Beijing on the trade war between the two world powers.
China's Ministry of Commerce clarified on Saturday that the previously announced rare earth export controls are not a blanket ban, and eligible companies can still apply for export licenses.
It also expects the move to have only a minimal impact on global production and supply chains.
In Washington, Vice President Vance said on Sunday that President Donald Trump values his friendship with Chinese President Xi Jinping and is willing to be a reasonable negotiator with Beijing.
The positive tone has fueled a rally in crypto prices, with Bitcoin (BTC) up around 3% to $114,000, while major altcoins such as Ether (ETH), Solana (SOL) and Dogecoin (DOGE) have jumped between 6% and 8% in the past 24 hours.
However, the rebound only partially covered last week’s losses, with BTC down 7%, ETH down 8%, while XRP and SOL fell 15% and DOGE 19%.
Market analysts see the latest moves as a sign of a changing sentiment, but not one backed by strong fundamentals. Previous rallies have been driven more by liquidity, narratives and AI-driven confidence than by fundamentals.
