Bitcoin surged close to a fresh yearly high, driven by renewed hopes that the United States and China are on the verge of finalising their long-awaited trade agreement. The leading cryptocurrency peaked just under $110,300 before retracing slightly to $109,560, as per TradingView data. The price action reflects investor optimism following comments from US President Donald Trump, who claimed the deal is “done, subject to final approval” between himself and Chinese President Xi Jinping.
Trump’s Tariff Statement Boosts Market Sentiment
In a post on Truth Social, Trump said the US is set to impose 55% tariffs while China will apply 10%, declaring the trade relationship “excellent.” This comes after months of tension marked by reciprocal tariff threats that rocked global markets, including crypto. Analysts suggest the announcement has temporarily calmed fears, leading to a bounce in both Bitcoin and broader market sentiment.
Source: Donald J. Trump
Iliya Kalchev of Nexo noted, however, that Wall Street futures saw a minor dip, indicating some skepticism about the substance of the agreement. “While tensions over rare earth exports may be easing, concrete policy shifts remain to be seen,” he said.
China Confirms Trade Framework Progress
On the Chinese side, Vice Commerce Minister Li Chenggang confirmed that the two nations had reached an “in-principle agreement” to settle trade disputes through cooperative measures. Speaking to Chinadaily, Chenggang said the discussions in London were “candid and in-depth,” indicating both sides are serious about resolving outstanding issues.
This progress may bring much-needed stability to global markets, particularly crypto, which has been sensitive to geopolitical and macroeconomic disruptions.
Crypto Markets Recover from Tariff Shock
Earlier in April, Bitcoin had plunged to a year-to-date low of $74,434 after Trump announced new import tariffs. The news wiped out over $5 trillion from the S&P 500 and triggered a sharp drop in investor sentiment. Venture capital activity in the crypto space also slowed, with only 62 VC rounds recorded in May, a 2025 monthly low, according to Cointelegraph.
BTC/USD, 1-day chart. Source: TradingView
Aurelie Barthere of Nansen attributed the slowdown to a “combination of market prices and sentiment,” which had deteriorated amid heightened tariff tensions.
Relief Rally or Temporary Reprieve?
While Bitcoin’s recovery is promising, analysts remain cautious. Raoul Pal, CEO of Global Macro Investor, warned that much of the negotiation process may be “posturing,” with real concessions yet to be confirmed. Investors are now watching closely for formal approval from both nations’ leaders.
If finalised, the US-China trade deal could mark a turning point for global markets and fuel further upside for Bitcoin and digital assets. Until then, the market may continue to fluctuate on headlines, a familiar dynamic for crypto in uncertain times.
