$BTC

Big news from Geneva: US and China have wrapped two days of talks, hinting at a “trade consultation mechanism” to cool off the tariff war!

No hard details yet joint statement drops May 12—but Treasury Sec. Scott Bessent and China’s Vice Premier He Lifeng are calling it “substantial progress.” POLITICO reports a platform for ongoing tariff negotiations is in play, with whispers of US tariffs dropping from 145% to maybe 80% and China’s from 125% to 10%.

Why care? The $295B US trade deficit with China has been a market chokehold, and these sky-high tariffs (US: 145%, China: 125%) have roiled global supply chains, jacking up costs. A thaw could stabilize markets, boost trade, and free up capital for crypto investments.

Reuters notes financial markets are “on edge” for a de-escalation—think lower volatility, more room for BTC and altcoins to shine.

Crypto angle: Eased tensions could juice USDC and stablecoin flows in cross-border trade, while DeFi platforms might see a surge if global liquidity loosens.