Crypto markets jumped on Sunday amid reports the US and China made progress in high-stakes trade negotiations.

The price of Bitcoin and Ethereum rose 1.6% and 2.8%, respectively, as officials said the two countries were unlikely to follow through with threats to impose sky-high tariffs and export controls.

“I would expect that the threat of the 100% [tariffs] has gone away, as has the threat of the immediate imposition of the Chinese initiating a worldwide export control regime,” US Treasury Secretary Scott Bessent told CBS News Sunday morning.

Renewed trade tensions earlier this month sent markets tumbling and caused the single largest liquidation event in crypto history.

On October 10, China said it would further restrict export of rare earth elements used in the manufacture of computer chips and other technology.

US President Donald Trump promptly hit back. On October 11, he said he would impose an additional 100% tariff on Chinese goods as well as export controls on “critical software” on November 1.

Major stock market indices fell more than 2%. But crypto was hit especially hard.

Bitcoin price, which had reached an all-time high of $125,000 earlier this week, plunged 16%, falling below $105,000 briefly. Many altcoins suffered even heavier losses, tumbling between 30% and 80%.

As crypto markets dipped, leveraged traders were forced to close out their positions, causing a cascade of liquidations that eventually topped $19 billion.

Even stablecoins were hit. USDC briefly dipped below a dollar, while USDT began trading at a slight premium.

The crash prompted at least one analyst to declare that “Uptober” has been “placed on ice.”

The term refers to October’s status as a historically bullish month for crypto assets.

According to Bessent, US and Chinese officials have settled several points of contention, including China’s purchase of US-grown soybeans and ownership of social media platform TikTok.

“I believe that as of today, all the details are ironed out, and that will be for the two leaders to consummate that transaction on Thursday in Korea,” Bessent said.

Aleks Gilbert is DL News’ New York-based DeFi correspondent. You can reach him at aleks@dlnews.com.