#新闻交易 On May 12, the White House announced that the United States reached a trade agreement with China in Geneva.
The United States will reduce tariffs on Chinese goods from 145% to 30% for a period of 90 days.
China will reduce tariffs on American goods from 125% to 10% for a period of 90 days.
With the release of this news, BTC surged by 1500 points and ETH surged by 37 points. Many people are asking why the market has risen so much. Some know it's due to the news, while others are puzzled, and many are blindly chasing the rise.
Today, I will briefly explain the logic behind the impact of this news, so that everyone can understand how to grasp the market trends based on news in the future.
1. Short-term benefits (risk asset sentiment warming up)
Market logic: Tariff reduction → Easing of U.S.-China trade tensions → Improvement in global economic growth expectations → Increased buying of risk assets (stocks, cryptocurrencies).
Historical reference: During the suspension of the U.S.-China tariff war in 2019, BTC rose approximately 23% that month.
Capital flow: Some safe-haven funds may flow out of the U.S. dollar and U.S. bonds, shifting towards volatile assets like Bitcoin.
2. Medium-term uncertainty (focus on the 90-day deadline)
Time limit: The 90-day temporary policy may lead to market wait-and-see behavior. If there is no further progress, Bitcoin may retrace its gains.
Inflation effect: If tariff reductions boost demand for American imports, it may delay the Federal Reserve's interest rate cuts, indirectly suppressing Bitcoin's upward potential.
From the current market situation, both Bitcoin and Ethereum still have significant upside potential. Overall, the bullish sentiment prevails. After the news caused a spike today, there was an immediate pullback, indicating that the market is not fully convinced by this news. However, the overall market situation is still warming and trending upwards.
If anyone has questions about the market, feel free to leave a message, and we can discuss it together!!!
