Despite Standard Chartered analysts incorrectly forecasting this past week a BTC price drop below $100,000 being “inevitable” over the weekend, Bitcoin surged to over $113,800 on October 24, 2025 following the announcement that the US and China have formally committed to a framework agreement made in Kuala Lumpur. According to media reports, this update aims to address several major trade issues. These agreements have been finalized after discussions were led by China’s Vice Minister of Commerce Li Chenggang. As the new week begins, Bitcoin has surged to over $114,000 at the time of writing.

US Treasury Secretary Scott Bessent explained that the latest agreement should actually prevent the United States from imposing 100% (or more) tariffs on Chinese imports and also postpone any additional exporting controls on China’s so-called rare earth minerals.

The significant change in stance follows a dramatic escalation in trade-related tensions, as US President Trump’s repeated threats/warnings of significant tariffs and China’s export restrictions on rare earths shook global financial markets. Because of these rising pressures, Bitcoin briefly crashed to below $104,000 (after surging as high as $126,000+ on October 6 of this month).

But after the latest trade update, the aggregate crypto market cap again surged past the $4 trillion mark, with Ethereum trading above $4,000 again.

Interestingly, the US will now increase tariffs on Canadian imports by as much as 10%. This, according to President Trump, who made these statements on Saturday through a post on his Truth Social platform. Although Canada is a major US trading partner, markets have surged instead of declining following this news update.

Nevertheless, the mounting measure comes just two days after Trump announced the United States would be ending all trade negotiations with Canada due to a since-paused TV ad that had been criticizing tariffs.

US carmakers are among those that are now caught up in the crosshairs of the trade tensions between the North American countries, with General Motors and Stellantis facing the potential consequences of a considerable reduction of assembly-line work situated at Ontario plants.

However, the overall investor sentiment is still positive across the US stock markets as well. More than likely, these temporary tensions with Canada will also be resolved sooner than later (the same way they have been with China). But it is still concerning how quickly these trade talks shift momentum because it poses considerable challenges for businesses. Should these patterns persist, then the global economic and political environment will become increasingly unpredictable and unstable. Of course, this will have a negative impact on the US and global economy.