Bitcoin and Ethereum experienced a significant price increase after U.S. President Donald Trump confirmed a planned meeting with China’s leader during the APEC summit on October 31. Following the announcement, Bitcoin climbed nearly 4%, while Ethereum gained approximately 5% to trade around $4,030. The positive sentiment added an estimated $100 billion to the total cryptocurrency market capitalization in a short period.

A Whale’s Complex Volatility Play

Adding to the market activity, an anonymous large-scale investor, or “whale,” reportedly opened $255 million in long positions across Bitcoin and Ethereum. Interestingly, the same trader also placed a $76 million short position on Bitcoin with 10x leverage. This combination suggests a sophisticated strategy designed to profit from price swings rather than a simple bet on a single market direction.

Market observers noted that this trader has a history of executing large, well-timed trades, including a previously successful $730 million short. The specific motives behind this dual-position strategy are currently being analyzed by market experts.

Geopolitical Tensions Provide Market Catalyst

The recent price surge appears directly linked to a shift in tone from the White House. President Trump’s recent comments that “it will all be fine” regarding China’s economy helped soothe investor fears. This marks a sharp reversal from just days earlier when his administration announced a potential 100% tariff on Chinese goods, a move that triggered a broad sell-off in both crypto and traditional markets. The confirmation of the upcoming summit is being viewed as a significant step toward de-escalating trade tensions.

On-Chain Data Shows Institutional Moves

Beyond the geopolitical news, on-chain activity reveals continued institutional interest. The firm BitMine was reported to have acquired approximately $1.5 billion worth of Ether, a major purchase that signals strong confidence in Ethereum’s long-term value. In a smaller but consistent move, El Salvador also added another eight BTC to its national reserves, bringing its total holdings to 6,355.18 BTC.

Exchange Outflows Suggest Holding Strategy

Data from major centralized exchanges shows a net outflow of around 21,000 BTC over the past week. Platforms like Coinbase Pro and Binance saw significant withdrawals, with approximately 15,000 BTC and 12,000 BTC moved off their respective exchanges. Analysts often interpret large outflows as a bullish indicator, suggesting that investors are moving their assets into private wallets for a long-term holding strategy rather than preparing to sell.

Market Outlook Remains Cautiously Optimistic

The market is currently navigating a mix of positive political signals and strategic positioning by major players. If diplomatic rhetoric between the U.S. and China continues to improve, prices could potentially retest recent monthly highs. However, the presence of a sizable short position from a prominent whale indicates that traders are also preparing for continued volatility. Market participants are now closely watching for further developments on both the political and on-chain fronts.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice, investment advice, or any other sort of advice. You should not treat any of the website’s content as such. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.