Bitcoin (BTC) has surged past the $105,000 mark following a significant breakthrough in trade negotiations between the United States and China. According to a joint statement released on Monday, the two global superpowers have agreed to dramatically reduce tariffs on each other’s goods for a period of 90 days, signaling a potential de-escalation of economic tensions.
Details of the Trade Deal
The agreement, which was reached after a weekend-long marathon of trade negotiations in Geneva, Switzerland, outlines substantial tariff reductions from both sides:
- The U.S. has committed to temporarily cut its tariffs on Chinese imports from 145% to 30%.
- In response, China has agreed to slash its tariffs on American goods from 125% to 10%.
The two nations have also established a mechanism for ongoing discussions about economic and trade relations. These talks will be led by Chinese Vice Premier He Lifeng, U.S. Treasury Secretary Scott Bessent, and U.S. Trade Representative Jamieson Greer.
Bitcoin Breaks Key Threshold Amid Market Optimism
The announcement has reignited optimism in global markets, sparking gains in the Chinese yuan, the U.S. dollar, and notably, Bitcoin. According to data from crypto.news, Bitcoin broke past the $105,000 barrier and is currently trading at $105,505, reflecting a 1.75% increase over the past 24 hours.
BTC’s market cap now stands at $2.09 trillion, rising by 1.76% in the same timeframe. Additionally, its daily trading volume has surged by 17.8%, indicating a flood of new activity driven by renewed market confidence.
Bitcoin’s rally is part of a broader trend that began at the start of May, with the cryptocurrency now up 25% over the past 30 days. Analysts are suggesting that the tariff rollback may have acted as a critical catalyst for this latest surge.
“This agreement alleviates some of the macroeconomic pressures that have been weighing down global markets, and Bitcoin is clearly benefiting from that,” commented Julia LaRoche, a senior analyst at GlobalBlock.
Altcoins Ride the Wave
The positive news from the U.S. and China has also spilled over into the broader crypto market:
- Ethereum (ETH) climbed by 2.7% to nearly $2,600.
- Ripple (XRP) increased by 2.17%, pushing its price to $2.41.
- Solana (SOL) gained 1.6%, building on its steady momentum.
Market analysts suggest that the temporary tariff relief could ease inflationary pressures, boost liquidity, and further drive investments into risk-on assets like cryptocurrencies.
Looking Ahead
While the 90-day window is a temporary measure, both Washington and Beijing have signaled a willingness to continue dialogue, offering a glimmer of hope for long-term stability. For Bitcoin and the broader crypto market, this geopolitical breakthrough could mark the beginning of an extended bullish phase, particularly if global economic conditions improve.
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