On May 12, 2025, the United States and China reached a tariff agreement, promptly impacting major cryptocurrencies with notable gains globally.
This agreement bolsters investor confidence, stabilizing the cryptocurrency market and leading Bitcoin and altcoins to climb amidst reduced geopolitical tensions.
US-China Deal: 90-Day Tariff Reduction Hits
The US and China announced a 90-day tariff reduction plan, initiated after tariff tensions reached unprecedented levels. Government officials, led by President Donald Trump, were crucial in reaching this diplomatic resolution. Donald Trump, U.S. President, “Great Progress”.
Talks in Switzerland aimed to ease the escalating trade war, allowing cryptocurrency markets to experience positive adjustments. Tariffs exceeding 100%, previously burdening both economies, saw a reduction as part of the agreement.
Bitcoin Surges Past $105,000 Amid Market Confidence
Bitcoin surpassed $105,000, with Ethereum and XRP posting strong gains. Investors view these developments favorably, boosting market optimism and prompting a rebound from previous lows.
Market stability signals a positive investor sentiment shift, supported by data showing historical rally patterns tied to improved geopolitical relations.
The agreement is anticipated to have broader effects on financial, regulatory, and technological sectors.
Trade Tensions Historically Dampen Crypto Valuations
Trade tensions, historically, negatively impacted cryptocurrency valuations, as seen in April 2025. The current rally suggests a strategic retraction from previous market disruptions linked to US-China tariffs.
Kanalcoin’s experts predict a prolonged market stability, owing to improved geopolitical relations. Analysts foresee further bullish tendencies, supported by historical trends and recent data affirming need for optimism.
Disclaimer: This website provides information only and is not financial advice. Cryptocurrency investments are risky. We do not guarantee accuracy and are not liable for losses. Conduct your own research before investing.
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