The recent U.S.–China trade truce—pausing tariffs for 90 days while excluding China—sparked a major risk-on mood. U.S. stock futures jumped (Dow up 2.5%, Nasdaq up 4%), as investors cheered a dollar pullback and calmer trade waters. Crypto rode the same wave: Bitcoin spiked past $105K before settling around $102K, and many altcoins saw solid gains too.
Why the buzz? First, reduced trade tensions usually weaken the dollar and boost liquidity, which often flows into high-risk assets like crypto. Second, positive headlines rev up market confidence, prompting both retail and institutional players to re-enter the game.
Will this détente sustain a crypto rally? Maybe—but tread carefully. If real economic improvements follow (like stronger trade flows or a softer Fed outlook), we could see a lasting upswing. However, if the deal proves temporary or macro headwinds return, today’s pump could end up being just another short-lived bounce. Either way, it’s a reminder that crypto markets are still riding the coattails of big-picture global events. #TradeWarEases