May 13, 2025
By Anjali Kochhar
Did you ever imagine a diplomatic handshake between two global giants could make your Bitcoin bag heavier overnight? Well, that’s exactly what happened. The long-standing U.S.-China trade war hit pause and the crypto market threw a party. Just hours after the announcement of a 90-day tariff reduction deal between the world’s two biggest economies, Bitcoin surged past the $104,000 mark, recording its highest level since January.
The U.S. agreed to slash tariffs on Chinese goods from 145% to 30%, while China reduced its tariffs on American imports from 125% to 10%. This sudden move, brokered in Geneva, has brought a fresh wave of optimism across global markets.Stocks rallied, oil prices jumped, and in true crypto fashion, Bitcoin led the charge.
“The positive developments surrounding the trade talks between the US and China have improved market sentiment, increasing buying interest in risk assets like cryptocurrencies. If the trade deal leads to reduced tariffs and improved global trade, increased corporate profits and overall liquidity in the financial markets could spill over into the cryptocurrency market. Bitcoin witnessed its best performance since January by surging above the $104,000 mark pushing the overall crypto market higher. We can expect this bullish momentum to continue owing to favorable macro-economic factors,” said Shivam Thakral, CEO of BuyUcoin, one of India’s leading digital asset exchanges.
Jeff Park, head of Alpha Strategies at Bitwise Asset Management, also weighed in on the development: “Tariffs might be just a temporary tool, but the permanent conclusion is that Bitcoin is not only going higher but faster.
The excitement wasn’t just limited to Bitcoin. Ethereum, XRP, and Solana also posted gains, reflecting a broad-based bullish trend. Ethereum rose 2.2%, while Solana climbed about 1% in the same 24-hour period.
Analysts from major financial institutions like Deutsche Bank and Pinpoint Asset Management also chimed in, noting that the agreement could lay the groundwork for stronger economic cooperation if both nations follow through. However, they also warned that since the tariff cut is temporary, the long-term impact depends on what happens after the 90-day window ends.
Meanwhile, traditional markets mirrored the crypto rally. S&P 500 futures jumped 2.7%, Dow Jones futures gained 2%, and oil prices spiked, all pointing to a global sigh of relief as tensions cooled, if only briefly.
In the ever-volatile world of crypto, where prices are often driven by hype, fear, and hope, this time it’s diplomacy doing the heavy lifting. And for now, Bitcoin holders have every reason to smile.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
