Bitcoin Surges Past $88K After Trump-Xi Phone Call

The Bitcoin price surged above $88,000 following a positive update from former President Donald Trump about his recent conversation with China’s President Xi Jinping. This event triggered optimism in both crypto and equity markets globally.

Donald Trump shared his “very good” call with Xi, underscoring a strong relationship with China, highlighting progress on key issues. No statements from Xi were available, but the potential for positive diplomatic relations was clear.

The immediate impact saw Bitcoin jump to $88,000, with equity markets like the S&P 500 and Nasdaq experiencing gains. Across the market, sentiment improved swiftly, leading to a broad-based risk-on move.

Financial markets reacted positively to Trump’s update, benefiting both cryptocurrencies and traditional assets. Institutional involvement remained solid, as recent spot Bitcoin ETF inflows and corporate treasury confidence persisted.

The geopolitical conversation may catalyze further investments, especially as liquidity improves due to anticipated U.S. economic policies. Investors are closely monitoring any breakthroughs in diplomatic engagements which could sustain the rally.

As Arthur Hayes noted,

liquidity was improving in the market, which marks another positive. He expects an increase in USD liquidity as the Fed ends quantitative tightening on December 1, while bank lending has also increased this month.