This appears to be a hypothetical or speculative news alert, as there are no recent reports of the US and China agreeing to a 90-day tariff reduction of this magnitude. However, let's break down the potential implications if such an event were to occur:
### **Key Points of the Announcement:**
1. **US Tariff Cut:** From **145% to 30%**
- A massive reduction, likely targeting specific sectors (e.g., electric vehicles, solar panels, or tech components).
- Could signal a de-escalation in trade tensions.
2. **China Tariff Cut:** From **125% to 10%**
- Similarly aggressive, possibly covering US agricultural goods, automobiles, or energy exports.
- Would boost trade flows between the two economies.
3. **90-Day Temporary Window:**
- Suggests a trial period before a potential long-term deal.
- Markets would watch for extensions or further negotiations.
### **Why Bitcoin ($BTC) Surged to $105,500:**
- **Risk-On Sentiment:** Trade war de-escalation typically boosts global markets, including crypto.
- **Dollar Weakness:** If the USD dips on reduced trade tensions, Bitcoin (as a hedge) could rise.
- **Chinese Capital Flows:** Easier trade conditions might improve liquidity, benefiting crypto markets.
- **Inflation Expectations:** Lower tariffs mean cheaper imports, potentially easing inflation—bullish for risk assets.
### **Is This Plausible?**
- **Unlikely at This Scale:** Recent US-China trade talks have been incremental, not drastic cuts like this.
- **Bitcoin’s Reaction:** A move to **$105,500** would require a macro shift beyond just tariffs (e.g., Fed dovishness, ETF inflows).
### **What to Watch Next:**
- **Confirmation from Official Sources** (USTR, China’s Ministry of Commerce).
- **Fed Policy Response** (tariff cuts could influence inflation outlook).
- **Crypto Liquidity Trends** (Asian market participation, stablecoin flows).
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