#USChinaTradeTalks
Cryptocurrencies are significantly affected by trade talks and geopolitical tensions between the United States and China.
Optimism in talks supports cryptocurrencies:
When trade talks between the United States and China proceed positively, and temporary or permanent agreements are reached to reduce tariffs, it creates a climate of optimism in global financial markets.
This optimism often reflects on the digital asset market, such as Bitcoin and alternative coins, where investors tend to increase their risk appetite and move towards alternative assets.
* For example, cryptocurrencies saw strong momentum and their prices rose in May 2025 after a temporary agreement was reached between the two countries to reduce mutual tariffs.
Rising tensions confuse markets and affect cryptocurrencies:
* Conversely, when trade and geopolitical tensions escalate between the United States and China, such as imposing mutual tariffs or taking countermeasures, it leads to a state of uncertainty and anxiety in global markets.
* During such times, investors tend to seek safe havens and may turn to assets like gold, while cryptocurrencies may experience volatility and declines.
* Weak inflation data in China or decisions