Bitcoin Wavers Below $108K, as the Trade Truce Fails to Halt Selling Pressure

Spotlight: US-China Trade Truce in Focus

The digital assets market is navigating mixed signals amid easing geopolitical tensions and domestic economic hurdles. Bitcoin dipped below $108,000 today (November 3rd) and has been in a slight downtrend over the past 7 days, declining ca. 6-7% on the week.

This market reaction is somewhat surprising given the recent US-China trade agreement following the Trump-Xi summit. The deal has paused US tariffs on Chinese imports for another year, halted plans for 100% duties on certain exports, and sees China lifting restrictions on critical minerals like rare earths and gallium while curbing chemical shipments to North America. This truce should strengthen global trade and, in theory, support risk assets, incl. Equities and digital assets. However, thus far, the market has reacted cautiously.

At the same time, the ongoing US government shutdown adds uncertainty, delaying key data releases and complicating Fed assessments. Fed speakers, including Governor Michael Barr and New York Fed President John Williams, are set to address the outlook this week, likely reiterating caution amid persistent inflation risks.