Reducing tariffs and establishing a consultation mechanism (Reuters), is set to uplift crypto markets. Bitcoin (BTC) could see a boost as trade stability encourages investment in risk assets, with analysts at AInvest noting the potential for significant gains. Altcoins like Ethereum (ETH), Solana (SOL), and XRP are also poised to benefit, likely seeing increased demand as reduced inflation pressures and global market confidence draw investors. Following negotiations on May 11 (CNN), this trade war easing fosters a favourable economic environment, supporting the ongoing crypto rally.

The U.S.-China trade war eased further on May 12, 2025, with a new agreement signed during high-level talks in Geneva, following negotiations on May 11 (CNN). The deal slashes reciprocal tariffs—previously 145% on Chinese goods and 125% on U.S. goods—and establishes a trade consultation mechanism to prevent future escalations (Reuters). This agreement aims to resolve the national emergency declared by the U.S. over trade deficits, reducing global market strain. By stabilizing trade flows, it could lower inflation pressures and boost investor confidence, potentially supporting risk assets like crypto in the long term.
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