- Bitcoin recovered some earlier losses, trading at about $111,200, but remained down 2%.
- President Donald Trump announced a reduction in U.S. tariffs on Chinese goods and pointed to progress on a trade deal.
- Cryptocurrency and equity markets declined following comments from Federal Reserve Chair Jerome Powell signaling no further rate cuts this year.
- Fidelity moved closer to launching a spot Solana ETF after amending its regulatory filing.
- The U.S. and China agreed on a one-year rare earth minerals deal and outlined plans for reciprocal visits by national leaders.
Bitcoin trimmed losses on Wednesday after an announcement from President Donald Trump regarding reduced tariffs on Chinese products. The leading cryptocurrency traded around $111,200, down 2% according to market data, after recovering from deeper lows seen earlier in the day.
Trump confirmed the tariff rate on select Chinese goods was lowered from 20% to 10%, reducing the overall U.S. tariff percentage to 47% from the previous 57%. He indicated that a trade agreement with China could be signed soon, stating in an Associated Press interview, “I guess on the scale from 0 to 10, with ten being the best, I would say the meeting was a 12.” The U.S. and China also arranged a provisional, one-year agreement on rare earth minerals that would require ongoing negotiations to extend.
Elsewhere in digital assets, Ethereum and XRP each slipped about 2%, while Solana managed a slight gain. These moves followed the Federal Reserve‘s decision to lower its benchmark interest rate by 25 basis points. Markets fell after Fed Chair Jerome Powell stated another policy cut in December was unlikely. Powell said, “A further reduction in the policy rate at the December meeting is not a foregone conclusion — far from it,” emphasizing persisting inflation concerns.
Investor sentiment toward Bitcoin remained neutral, according to recent trading forums. Some traders anticipated a quick rebound to $114,000.
In regulatory developments, Fidelity amended its S-1 filing to move forward with a spot Solana ETF. The update removes a delaying provision, meaning the product could potentially go live 20 days after the amendment, even without explicit regulatory approval, especially during periods of government shutdown.
The agreements reached between the U.S. and China included a one-year arrangement to manage rare earth mineral exports, with both leaders, Trump and Xi, expected to conduct reciprocal visits in the coming months.
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