The financial markets witnessed significant developments following the meeting between the leaders of the United States and China in South Korea, where important tariff reductions were announced that could reshape the trade balances between the two economic powers.
Where the American President Donald Trump confirmed that comprehensive tariffs on China will decrease from 57% to 47%, along with a reduction in tariffs on specific products, such as fentanyl, to 10%.
Washington and Beijing also agreed to enhance cooperation regarding the war in Ukraine, with a Chinese commitment to open dialogue about chip restrictions with Nvidia.
Trump announced a temporary agreement with China for the supply of rare minerals extending for one year, adding that he will visit Beijing in April 2026, describing the meeting with President Xi as "12 out of 10."
This shift in trade relations has directly reflected on the cryptocurrency market, primarily Bitcoin $BTC where the price of Bitcoin rose to high levels but fell after the surrounding momentum ended.
Earlier today, the price of Bitcoin fell below $108,000, its lowest level in a week, despite the Federal Reserve announcing a recent interest rate cut—which is usually seen as a supportive factor for cryptocurrencies.
Currently, the price of Bitcoin is trading at the support level of $110,000 with a market capitalization estimated at around $2.9 trillion.
Despite this relative recovery, the sharp decline during the day led to the liquidation of long positions worth over $360 million on Bitcoin alone, while the total affected positions in the cryptocurrency market exceeded $800 million, according to CoinGlass data.
