Bitcoin and global markets rallied this week as signs emerged of a possible thaw in the long-running U.S.-China trade conflict, even as fresh sanctions and diplomatic tensions underscored the complexity of the world’s most important economic relationship. In Shanghai, a rare visit by a U.S. congressional delegation signaled a potential shift toward renegotiating the rules of the global economy—one that could reshape not only trade, but the financial landscape for years to come.
On September 24, 2025, Bitcoin, the world’s largest digital currency, surged for a second consecutive day, climbing as much as 3.2% to top $97,714 before easing slightly, according to Bloomberg. Ether, the second-ranked cryptocurrency, also jumped, gaining up to 4.2%. The rally came on the heels of news that U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer would meet with Chinese officials in Switzerland, a move that revived hopes for progress in resolving the bitter tariff standoff that has roiled global markets.
“We’re seeing a broad-based risk-on sentiment today, largely driven by the reopening of trade dialogue between the U.S. and China. Global equities are up, gold is retreating, and the USD is modestly higher. This is a classic risk-on setup that is also lifting crypto markets,” QCP Capital trader Yuan Rong Tan told Bloomberg. The optimism was palpable across financial markets, with investors apparently brushing aside escalating military tensions elsewhere, including India’s announcement of targeted strikes against Pakistan and reports of downed jets—events that, at least for now, were “totally ignored” by crypto traders, as Sean McNulty of FalconX Ltd. observed.
Demand for upside exposure in Bitcoin was particularly pronounced in the options market, where activity clustered around call options with a $100,000 strike price, data from Deribit—the largest crypto derivatives exchange—showed. The renewed appetite for risk comes after a turbulent year for cryptocurrencies. Bitcoin had previously soared to a record $109,241 in January, buoyed by enthusiasm for U.S. President Donald Trump’s pro-crypto rhetoric and legislative push. Yet, Trump’s aggressive tariff program and the resulting market volatility had since weighed on digital assets, making the recent rally all the more notable.
This positive market sentiment coincided with a significant diplomatic development in Shanghai. On September 25, a U.S. congressional delegation led by Rep. Adam Smith, D-Wash., concluded a five-day visit to China—the first such trip by House members since 2019. The group, which included Democrats Ro Khanna of California and Chrissy Houlahan of Pennsylvania, as well as Republican Michael Baumgartner of Washington, met with Chinese officials in both Beijing and Shanghai. Their central mission: to reopen lines of communication and lay the groundwork for a new chapter in U.S.-China relations.
At a meeting with Shanghai Mayor Gong Zheng, Rep. Smith made headlines by backing the idea of renegotiating the global economic rules established after World War II, acknowledging that the rise of China, India, and Brazil demands a rethinking of the international order. “We understand that things have changed,” Smith told the mayor, echoing recent calls by Chinese leader Xi Jinping for a more equitable global governance system. According to The Associated Press, Smith stressed the need for “a robust debate about how to renegotiate the rules governing the economy,” adding, “China and the U.S. are the two most important players in how we resolve that. How do we get to an international rules-based order that is more agreeable to everyone?”
Mayor Gong, for his part, emphasized the heavy toll the U.S.-China tariff war has taken on Shanghai, one of the world’s busiest shipping ports and a city deeply tied to international trade. “We’re very glad to see that we already have talks and negotiations,” Gong said, citing four rounds of meetings since May in Geneva, Stockholm, London, and Madrid. He reiterated China’s position that “there are no winners in trade wars,” but insisted that while China remains open to negotiation, it is prepared to defend its interests if necessary.
Despite the ongoing trade battles, Smith pointed to the continued expansion of U.S. businesses in China as evidence that economic ties remain strong. “A lot of business is going on between the two economies despite the ongoing trade and tariff war,” he observed, referencing the growth of McDonald’s and Starbucks outlets across China. Still, he acknowledged the challenges: “We have a lot of work to do to resolve those issues.”
The visit also highlighted the need for improved military communication between the two nuclear powers. Smith, along with his fellow House Armed Services Committee members, reiterated his call for more direct dialogue between the U.S. and Chinese militaries. “Two of the largest nuclear powers in the world need to be talking to each other, particularly considering the fact that we do have some disagreements,” he said.
Yet, even as diplomatic overtures were made, new flashpoints emerged. On the same day as the congressional visit, China announced sanctions on six U.S. companies, citing military-technical cooperation with Taiwan—a move that further complicated the already fraught relationship. Three firms, including unmanned-vehicle maker Saronic Technologies, satellite company Aerkomm, and subsea engineering firm Oceaneering International, were added to China’s “unreliable entity list,” effectively banning them from trade with China. Three others, including military shipbuilder Huntington Ingalls Industries, were placed on an export control list barring them from receiving Chinese shipments of dual-use items. The Commerce Ministry said these actions were necessary to protect China’s national security and interests.
China’s stance on the international order was made clear in a Foreign Ministry document, which stated, “The collective rise of emerging markets and developing countries necessitates boosting the representation of the Global South.” The government insists it does not seek to overturn the current system, but rather to reform it so that it better serves all nations, especially those still developing.
Looking ahead, both Washington and Beijing say they want to resolve differences over trade, technology, and the ownership of platforms like TikTok. After a lengthy phone call with Xi Jinping last week, President Trump announced the two leaders would meet at a regional summit in South Korea at the end of October—a potential turning point in the ongoing saga.
As global markets watch closely, the interplay between economic optimism and diplomatic tension remains as complicated as ever. Whether the recent surge in Bitcoin and the reopening of dialogue can lead to lasting change is anyone’s guess. But for now, the world’s two largest economies appear to be edging—however cautiously—toward a new era of negotiation and, perhaps, cooperation.
In a week marked by both market exuberance and geopolitical uncertainty, the message from Shanghai is clear: the stakes have never been higher, and the world is watching.
