US-China Trade Deal Seen Boosting Optimism as Bitcoin Nears New High
Concerned crypto investors are finding some relief. Bitcoin (BTC) prices climbed near a new 24-hour high, triggered by widespread optimism that the United States and China have reached a final agreement on their long-awaited trade deal.
The world’s largest trading economies have nearly completed their negotiations, a Wednesday post from Truth Social attributed to US President Donald Trump stated.
“Our deal with China is done, subject to final approval with President Xi and me. We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent.”
— Donald J. Trump (@realDonaldTrump) [Image attribution blurred per Teleskoop]
Both sides appear to agree the deal, though some analysts described the agreement as more cosmetic, pointing out concrete economic outcomes remain questionable.
While the “deal” “appears to defuse some tensions over rare earth exports,” Nexo dispatch analyst Iliya Kalchev pointed out that Wall Street futures saw a slight drop in response to the news.
“Almost all the other tariff negotiations and rhetoric are all about getting China to agree to a deal,” noted Global Macro Investor founder and CEO Raoul Pal.
On Tuesday, Chinese Vice Commerce Minister Li Chenggang confirmed that principles for resolving trade disputes through cooperation were reached during recent talks.
“The two sides had… candid and in-depth talks.”
The potential trade agreement offers hope to crypto investors. Earlier this year, reciprocal tariffs proposed by Mr. Trump were viewed as the primary macroeconomic risk facing equities and cryptocurrency markets.
Fear of high import tariffs on Chinese goods had earlier driven down Bitcoin prices. Following Mr. Trump’s tariff announcement on April 2, Bitcoin dropped to a year-to-date low, coinciding with a massive [$5 trillion+] loss in the S&P 500 index.
Furthermore, tariff rhetoric contributed to a sharp decline in venture capital investment rounds within the cryptocurrency sector.
Another expert, subscription-based platform DeFi Newsletter, adds this nuance, though its content falls outside the core reporting.
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