Crypto-related stocks saw an increase on Monday after President Donald Trump and Treasury Secretary Scott Bessent indicated that advancements were being made in U.S.-China trade negotiations.
“I feel optimistic” about a deal, Trump mentioned to reporters Monday morning, talking about an agreement that would permit China to keep supplying the U.S. with rare-earth magnets — an essential element in various products from electric vehicles to smartphones — in exchange for reducing the 100% tariff threat announced earlier this month.
This comes after similarly encouraging weekend remarks from Treasury Secretary Scott Bessent, which drove bitcoin up to $116,200 on Sunday before a slight decline to the current $115,000.
Notable gains on Monday included Robinhood (HOOD), which rose by 5%. Bitcoin miners and AI infrastructure companies like Hut 8 (HUT), CleanSpark (CLSK), and IREN (IREN) increased in the 2%-3% range.
American Bitcoin (ABTC), led by Eric Trump, which announced its acquisition of an additional 1,414 bitcoin (bringing total holdings to 3,865), was up by 10.5%.
In contrast, stablecoin issuer Circle fell by 2.3%.
Traditional markets also experienced gains, with the Nasdaq rising by 1.5% and the S&P 500 by 1%.
Previously high-performing precious metals continued to decline in interest among investors, with gold slipping another 3.2% and silver 4.5%.
Trump is set to meet with Chinese President Xi Jinping on Thursday. While the specific details of the potential deal are still being finalized, rare-earth elements remain a key element of the negotiations. China holds about 70% of the global production of these materials, essential for electric vehicle motors, wind turbines, and military equipment.
The rally also comes as traders prepare for the Federal Reserve’s forthcoming policy announcement. The central bank is widely anticipated to decrease its benchmark interest rate by 25 basis points, a decision that could lower borrowing costs and possibly encourage more risk-taking in assets such as cryptocurrencies and tech stocks.
