The China-U.S. trade negotiations, according to Deputy Prime Minister Ha Lap Phong, took place "extensively, frankly, and constructively" with many important agreements. Both sides will establish an economic-trade consultation mechanism and implement the agreement from the phone call on January 17 (hypothetically between Trump and Xi Jinping). Below is an analysis of the impact on the crypto market:
Positive Impact:
Successful negotiations reduce U.S.-China tensions, boosting optimism in the financial market, including crypto. Bitcoin and altcoin prices increase as trade conflicts ease, with investors returning to high-risk assets. Long-term cooperation and the consultation mechanism strengthen confidence and reduce crypto price volatility.
If tariffs are reduced (for example, the U.S. from 145% to 30% or China from 125% to 10%), global trade will improve, leading to a flow of capital into crypto from institutions and individuals. This is particularly beneficial for major coins like Bitcoin and Ethereum.
Risks:
If the negotiations are only temporary or do not reach a specific agreement, instability may put selling pressure on crypto.
The ban on crypto trading in China (since 2021) may limit positive impacts, especially if Beijing prioritizes domestic stability over opening up the market.
Improved trade negotiations boost sentiment, which could push crypto prices up in the short term, especially if tariffs are reduced. Investors should monitor the details of the agreement, manage risks, diversify portfolios, and stay updated with news from Reuters and Bloomberg.
