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| Former President Trump and President Xi Jinping move closer to a finalized trade agreement, calming global markets. |
Bitcoin has once again captured global attention as it surged toward a new all-time high, bolstered by optimism surrounding a finalized trade agreement between the United States and China. The cryptocurrency market, which had been weighed down by months of economic uncertainty and geopolitical tensions, appears to be regaining strength, thanks to what may be a landmark development in international trade relations.
According to data from TradingView, Bitcoin (BTC) spiked to nearly $110,300 before settling slightly lower at around $109,560 by midday Wednesday. This represents a significant rebound from its yearly low of $74,434 recorded on April 7, 2025, shortly after President Donald Trump’s aggressive tariff announcement sent shockwaves across global markets.
While traditional markets reacted with some caution evident from a slight dip in Wall Street futures, the cryptocurrency space welcomed the news as a possible turning point.
In a post on his social platform Truth Social, Donald Trump declared that the long-awaited trade agreement between the U.S. and China was "done," pending final endorsement from Chinese President Xi Jinping. Trump further elaborated that under the terms of the agreement, the U.S. would impose 55% tariffs, while China would levy 10%, framing it as a "win-win" for both nations.
He also emphasized that relations between the two global superpowers were now “excellent,” marking a notable departure from the bitter rhetoric and economic brinkmanship that had characterized much of their previous negotiations.
China’s Vice Commerce Minister confirmed on Wednesday that the two countries had reached an “in-principle agreement” during recent trade talks in London. Though the full details of the deal remain under wraps, early reports suggest the agreement may include provisions for enhanced trade cooperation, relaxed restrictions on rare earth mineral exports, and clearer technology-sharing guidelines.
If finalized, the deal could ease longstanding trade friction and potentially pave the way for more stable financial markets globally, particularly in sectors that are sensitive to international policy shifts, like cryptocurrency.
Bitcoin’s rally is not occurring in isolation. Other leading cryptocurrencies, including Ethereum (ETH), Solana (SOL), and XRP, also recorded notable gains in early Wednesday trading. Analysts attribute this broader crypto recovery to renewed investor confidence, sparked by signs of geopolitical stabilization.
For months, the digital asset market had been clouded by the uncertainties of U.S.-China relations. Tariffs, tech bans, and fears of economic decoupling created volatility that rattled not just traditional stock markets but also speculative digital assets.
Notably, crypto venture capital (VC) activity reached its lowest monthly count of the year in May 2025, as investors paused funding amid worsening global tensions. However, the finalized trade agreement may signal a reversal of that trend, potentially inviting fresh capital into the blockchain ecosystem.
The connection between geopolitical developments and Bitcoin’s price action has long been a subject of analysis. As a decentralized asset, Bitcoin is often viewed as a hedge against political and economic instability. However, it can also react positively to news that reduces uncertainty, just as we’re seeing now.
According to crypto market analyst Lara Mensah from Nairobi-based FinChain Africa:
“Bitcoin tends to perform well during periods of policy clarity. The news of a finalized trade agreement removes a significant cloud of doubt, especially for institutional investors who have been sitting on the sidelines. This surge is more about confidence returning to the market than short-term speculation.”Mensah also pointed out that the market is pricing in more than just the trade deal—it’s responding to the potential for global economic recovery and increased risk appetite among investors.
To understand the significance of this recent Bitcoin rally, it’s important to look back just a few months.
On April 2, 2025, Donald Trump’s announcement of sweeping new tariffs on Chinese imports triggered a chain reaction. The move not only upset global trade balances but also severely impacted sentiment in crypto circles. Within five days, Bitcoin had plunged to its 2025 low, and trading volumes shrank across several major exchanges.
Crypto investors feared that escalating tensions between the two nations could lead to increased regulation, restrictions on crypto mining, and even capital flight. Several mining operations in Asia reportedly paused activities during the most volatile weeks in April.
However, with the trade deal now apparently in place and diplomatic rhetoric softening, Bitcoin’s climb is being seen as a vote of confidence from the market that the worst may be over, at least for now.
Interestingly, while crypto markets are rallying, Wall Street has responded with more caution. Futures for the Dow Jones, S&P 500, and Nasdaq all dipped slightly following the trade announcement. Some analysts interpret this as a classic “buy the rumor, sell the news” scenario, while others believe it reflects skepticism about the enforceability or longevity of the new trade terms.
Others note that the fine print of the agreement and how it's actually implemented will be critical in determining its lasting economic impact.
With Bitcoin already approaching the symbolic $110,000 threshold, many are wondering if it’s poised to break new records.
Technical analysts say that if BTC manages to stay above $108,000 for the next 72 hours, it could potentially retest the all-time high of $112,000 set in late 2024. A successful breakout could open the door to a new phase of bullish momentum, especially if broader macroeconomic indicators also begin to improve.
However, seasoned traders urge caution. Volatility remains a core feature of crypto markets, and sudden reversals are not uncommon.
As always, it’s important for investors to diversify their portfolios and stay informed about both market trends and global economic shifts. Trump Threatens 50% Tariff on EU: Global Trade Tensions Set to Escalate
The recent surge in Bitcoin’s price highlights the increasingly complex relationship between global politics and digital finance. While the finalized U.S.-China trade deal may still face hurdles, its mere announcement has already reignited bullish sentiment in the crypto world.
As the dust settles and more details emerge, investors will be watching closely to see whether this marks the beginning of a new chapter for Bitcoin and the broader cryptocurrency ecosystem or just a temporary bounce in a still-uncertain world.
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