Bitcoin and the entire cryptocurrency and stock market have been influenced by the trade war instigated by U.S. President Donald Trump after his inauguration. The initial wave of tariffs on countries like China caused a major collapse across financial markets, causing Bitcoin's price to drop below $80,000. However, the trade war is nearing its end with the latest announcement from the White House regarding trade between the U.S. and China.
The White House announced a reduction in tariffs on China
In April 2025, U.S. President Donald Trump announced a sharp increase in tariffs on Chinese goods to a high of 145%, with more than 180 countries also witnessing increases in tariffs. This caused a wave of panic and retaliation, leading to what is now called the 'trade war.' As discussions progressed, another announcement in April revealed a 90-day suspension of tariffs on other countries, excluding China.
While China has not yet been exempted, the 90-day suspension order has positively impacted the market as Bitcoin's price has recovered, leading to an increase in the cryptocurrency market. Since then, Bitcoin's price has recovered above $100,000, and the stock market has also seen many green days.
Trade talks have been ongoing between China and the U.S. since then, and a temporary measure has now been put in place. In a statement on the White House website, it was announced that both the Chinese and U.S. governments at the U.S.-China Economic and Trade Conference in Geneva agreed to amend their respective applications and implement a suspension of 24 percentage points of tariffs.
This agreement is expected to take effect for an initial period of 90 days, giving both sides time to further discuss toward a resolution. The statement indicated that this was done in the 'spirit of mutual openness, continued communication, cooperation, and mutual respect.'
Why Bitcoin's price could explode
Currently, the Bitcoin price surge is being driven by positive news surrounding tariffs. Therefore, more positive news is expected to further drive prices up. The agreement between the U.S. and China states that both countries must implement tariff reductions before May 14, 2025. With just one day left, this deadline could trigger another price surge.
As news of the suspension order began to spread, it signaled that there would be no negative news related to tariffs for at least the next three months. This provides time and, most importantly, confidence in risky assets like Bitcoin for investors seeking profits. With the return of investors to the risk market, Bitcoin's price could quickly surpass $110,000 as early as Wednesday.
