The senior officials of US and China have concluded the initial two days negotiations with vague remarks of "candid, in depth" and "constructive" which signals a potential thaw after strained trade relationship.
The official statement is awaited . However the sources from Reuters, WSJ and Business Insider have said that:
i. Both countries agreed to reduce tariffs significantly.
ii. Exact percentage cuts were not officially detailed.
iii. China committed to increasing purchases of Us goods.
Impact on the Crypto Market
Obviously the reactive crypto market responded to the news swiftly with:
i. BTC jumped over $104k.
ii. ETH surged past $2500.
iii. Altcoins like Solana (SOL), Avalanche (AVAX) and Chainlink (LINK) also experienced double digit gains.
Why The Crypto Spike?
i. The expected deal removed global economic uncertainty which will lead to increased inflows in cryptos.
ii. Reduced tariffs ensure global capital flow which will increase the demand for decentralized cryptos.
Long Term Implications For Crypto
i. Institutional interest in Crypto will probably rise.
ii. If the trade stability holds, regulators might feel less urgency to clamp down on cryptos.
The possible US and China trade agreement is a good sign for global economy in general and for crypto market in particular as evident from the earlier "tariff pause".