U.S. Treasury Secretary Bessent focuses on thanksgiving for trade deal with China – will Bitcoin feel the heat?

Bitcoin fell more than 2% in the past 24 hours on Sunday, falling below $94,000 as traders digested a wave of new macroeconomic headlines. Most notably, Treasury Secretary Scott Bessent suggested a U.S.-China trade deal could be reached by Thanksgiving.

The comments added new uncertainty to an already fragile market and ushered in a potentially volatile period for cryptocurrencies as political deadlines collide with low holiday liquidity.

Bitcoin falls as macro tensions flare up again

At the time of writing, Bitcoin is trading at $93,987, down 2.08% in the past 24 hours. Amid the pullback, $100 million worth of crypto longs were liquidated in the past 60 minutes.

Notably, the last time Bitcoin traded below $94,000 was on May 5, 2025, and analysts believe the decline was due to overleverage. The decline is likely due to Bessent setting a countdown to a possible resolution to the US-China trade tensions.

“Bitcoin also fell significantly after the end of the last US government shutdown,” said analyst Crypto Rover, highlighting the impact that the end of uncertainty will have on the market.

Bitcoin (BTC) price performance. Source: BeInCrypto

The withdrawal and subsequent liquidation followed comments Bessent made during an appearance on Fox News. The Trump administration aims to finalize a trade deal with China by November 27, the US Treasury Secretary said.

He pushed back on TradFi media reports suggesting a delay as inaccurate, insisting the deal was on track.

More importantly for the crypto market, Bessent expressed confidence that China will abide by the agreement following the upcoming meeting between President Trump and Chinese President Xi Jinping.

If Beijing fails to meet its commitments, Washington has warned that it is still “unfulfilled.”many levers” is available, language that has traditionally been interpreted as tariff or enforcement pressure.

Why Thanksgiving is important for the crypto market

The timing of a potential trade deal, just before the U.S. holiday, is important for traders anticipating thin liquidity, heightened volatility and holiday-specific factors.

Historically, Bitcoin has reacted sharply to unexpected geopolitical headlines during periods of low trading volume, thereby increasing volatility. Such examples include over the weekend, when President Trump’s unexpected announcements moved markets and caught traders off guard with large price swings.

Sentiment is that the timing of these developments can be calculated to protect traditional markets from volatility. This often allows crypto trading to feel the full impact of the news and remain in control.

Any signs of progress in US-China negotiations could stabilize risk sentiment and support BTC’s recovery. Conversely, any hint of a delay, disagreement or threat of additional tariffs could fuel another selloff, especially as leveraged positioning remains elevated.

“The US-China trade deal, centered around rare earths and export permits, is reportedly expected to be finalized by Thanksgiving. If things continue like this, the market will react,” said analyst Kyle Doups.

Already, Bitcoin trading has fallen and market breadth has weakened, and the macro narrative is once again drawing cryptocurrencies into the global policy arena.

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