Fear persists in the virtual asset market despite U.S.-China trade agreement…"October crash, in hindsight, will be the low"

Despite easing trade tensions between the United States and China, investor sentiment in the virtual asset (cryptocurrency) market remains subdued. According to Cointelegraph on the 2nd (local time), even after U.S. President Donald Trump officially announced a trade agreement with China, the 'Crypto Fear & Greed Index' remained in the 'Fear' stage.

The index stood at 37 points on the 2nd, up 4 points from 33 the previous day, but still at an uneasy level. The White House described the agreement as "a major victory that puts American workers, farmers and families first while protecting the economic strength and security of the United States."

This trade negotiation was the first concrete agreement reached since the tariff clashes between the two countries, and the virtual asset industry is focusing on its potential to act as a catalyst for market recovery. In fact, when President Trump announced a 90-day mutual tariff reprieve on April 9, the Fear & Greed index surged within 24 hours from 18, an 'Extreme Fear' level, to 39, the 'Fear' stage.

On the other hand, the recent market crash was closely related to Trump's threat of 100% tariffs on China. On October 11, about $19 billion worth of virtual assets were liquidated in a single day, causing the market to crash, and recovery has since been delayed. Regarding this, MN Trading Capital founder Michaël van de Poppe said on X (formerly Twitter), "The October 11 crash will be considered the 'day of the low' in hindsight," adding, "We are still in the early stages of a bull market for Bitcoin and altcoins."

The U.S. government said that under the agreement it would "suspend reciprocal tariff escalations on Chinese imports until November 10, 2026." Market participants view this 'policy certainty' as a positive factor for the virtual asset market. Trader Ash Crypto said, "This level of clarity will act as a bullish factor for the market," and another trader, 0xNobler, described it as "GIGA BULLISH NEWS."

However, no clear rebound has emerged in the short term. According to CoinMarketCap, on the 2nd Bitcoin was trading at $110,350 and Ethereum at $3,895, each up only 0.26% and 0.84% respectively over 24 hours.