U.S.-China Tariff Thaw Sparks Market Rally, Shifts Crypto Dynamics ♻️
The U.S. and China have slashed tariffs, with U.S. duties on Chinese goods dropping from 145% to 30% and China cutting levies on U.S. products from 125% to 10%. This triggered a 3% surge in U.S. stocks as markets bet on boosted global trade. Gold dropped nearly 3% but later stabilized, while volatility measures like the VIX fell to 18, and Bitcoin’s front-end volatility tightened. Bitcoin (BTC) and Ethereum (ETH) dipped slightly, with BTC at $103K and ETH at $2.4K, but ETH is showing signs of outpacing BTC as altcoins gain traction. BTC’s role as “digital gold” versus a risk-on asset keeps it range-bound, while ETH’s cleaner breakout, tied to the Pectra upgrade, suggests it’s becoming a stronger investment focus.
This tariff rollback is a big deal for markets, and the risk-on vibe is clear with stocks jumping and volatility cooling off. I think BTC’s stuck in a weird spot—its “digital gold” narrative clashes with its riskier side, so it’s no surprise it’s not making bold moves. ETH, though, feels like it’s got more momentum, especially with the Pectra upgrade giving it a solid story. If trade optimism keeps up, ETH could steal the show as investors chase alts. Still, I’d keep an eye on BTC’s vol curve steepening—might hint at longer-term bets brewing.
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