TLDR
- A crypto whale placed $255 million in long positions on Bitcoin and Ethereum after President Trump confirmed his October 31 meeting with Chinese President Xi Jinping at the APEC summit.
- Bitcoin rose 3% and Ethereum gained 3.48% following the announcement, with the crypto market adding over $100 billion in total value within hours.
- Trump reversed his stance from one week prior when he announced 100% tariffs on China and said there was no reason to meet Xi.
- China removed its WTO ambassador Li Chenggang, signaling a potential shift toward friendlier trade negotiations with the United States.
- The same whale subsequently opened a $76.1 million short position on Bitcoin, indicating expectations of continued market volatility ahead.
An insider crypto whale opened $255 million in long positions on Bitcoin and Ethereum following President Donald Trump’s confirmation of a meeting with Chinese President Xi Jinping. The meeting will take place on October 31 during the APEC summit in Seoul, South Korea.
Trump announced the meeting during a Fox News interview on Sunday. He called Xi Jinping “a very strong leader” and “a very amazing man.” Trump stated that relations with China would be “fine” and that both countries need a fair trade deal.
The announcement represents a complete reversal from Trump’s position one week earlier. He had previously announced 100% tariffs on Chinese goods and said there was no reason to meet with Xi. That announcement triggered nearly $20 billion in crypto liquidations and caused some altcoins to lose 99% of their value.
Trump’s softer tone on Sunday reassured markets. He described China’s economic struggles as “just a bad moment” and suggested on Fox Business that the tariffs might not remain permanent.
Bitcoin and Ethereum Price Response
Bitcoin price increased approximately 3% following Trump’s announcement, reaching around $111,204. Ethereum posted gains of 3.48%, trading near $4,038. The broader cryptocurrency market added over $100 billion in value within ten hours.
Other major cryptocurrencies also rallied. BNB rose 3.5% while Solana increased nearly 4%. Market sentiment had hit a six-month low before the announcement, with the Crypto Fear & Greed indicator dropping to 22 on Friday.
China Makes Strategic Personnel Move
Beijing removed Li Chenggang from his position as ambassador to the World Trade Organization. Li had clashed repeatedly with U.S. Treasury Secretary Scott Bessent over trade issues. Market analysts view this removal as China preparing for softer diplomatic negotiations with Washington.
The timing suggests Beijing is positioning itself ahead of the October 31 summit. The personnel change came just before Trump confirmed the meeting date.
Whale Trading Activity Signals Volatility
The insider whale’s $255 million long position suggests expectations of improved U.S.-China relations. However, the same trader later opened a $76.1 million short position on Bitcoin using 10x leverage. This whale has a documented history of precise market timing.
Last week, the trader expanded a Bitcoin short to $127 million after successfully executing $735 million in short positions. The new short position indicates the whale anticipates continued price swings despite positive diplomatic developments.
Analysts at the Kobeissi Letter believe the recent market downturn may be temporary. They maintain the long-term bullish trend for cryptocurrencies remains intact. The crypto derivatives market experienced its worst liquidation event in history when Trump initially announced the tariffs.
The October 31 meeting between Trump and Xi at the APEC summit will be closely watched by crypto traders. Trade relations between the world’s two largest economies have direct implications for risk asset markets including cryptocurrencies. Trump confirmed the meeting will include “other people” in addition to Xi Jinping.
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