Jakarta. Digital asset traders are eyeing a potential rebound in cryptocurrency prices as investors await signs of easing tensions between the United States and China, according to Upbit Indonesia.

The exchange said that any statement signaling de-escalation, a temporary trade truce, or even a shift in monetary policy could help calm the markets and support risk assets, including crypto.

The broader crypto market has extended its downturn this week, with total market capitalization falling 1.04 percent in the past 24 hours, adding to a seven-day decline of 4.79 percent. As of 10:00 a.m. Jakarta time on Wednesday, Bitcoin (BTC) fell 1.15 percent to $108,255, while Ethereum (ETH) dropped 2.15 percent to $3,849, and Solana (SOL) slipped 0.58 percent to $185.05, CoinMarketCap data showed.

Bitcoin has remained mostly in negative territory since Tuesday, Oct. 14, with prices dipping to as low as $103,736 on Oct. 17.

“A rebound is very possible if tensions cool or positive developments emerge,” said Resna Raniadi, Chief Operating Officer of Upbit Indonesia, in a statement on Wednesday. “Like traditional markets, crypto remains highly sensitive to global sentiment. However, investors must stay disciplined in managing risk during volatile periods.”

Upbit expects crypto prices to stay volatile throughout the week, with selling pressure likely to persist if the trade dispute between Washington and Beijing intensifies. Market volatility is projected to remain elevated, with potential downside early in the week and recovery opportunities later on.

The latest flare-up in the US–China trade war has sent shockwaves across global financial markets and the digital asset sector is no exception. 

The standoff escalated after the US government imposed special fees on Chinese vessels docking at American ports starting October 14. In retaliation, China announced similar measures on ships with US ownership or flags.

The move followed President Donald Trump’s decision to raise tariffs on Chinese imports by up to 100 percent, prompting Beijing to restrict exports of rare earth minerals vital to the global tech industry.

“This latest tit-for-tat marks a new chapter in the economic rivalry between the two superpowers,” Resna said. “The resulting uncertainty continues to weigh on risk assets, including crypto.”

In response to the turbulence, Upbit Indonesia advised traders and investors to remain calm and flexible. The exchange recommended avoiding excessive leverage during periods of high volatility and maintaining a portion of holdings in fiat or stablecoins to capitalize on future buying opportunities.