A new U.S.-China trade deal, implemented May 12, 2025, has significantly impacted global markets, including cryptocurrency prices. The agreement reduced tariffs on international trade, causing a surge in Bitcoin to approach record highs above $105,000. Ethereum and other cryptocurrencies also saw significant gains. This price increase is attributed to the improved market sentiment following the reduction of import tariffs and renewed trade dialogue between the two nations.
The agreement involved key economic officials from both countries including Scott Bessent from the U.S. Treasury, who negotiated in Geneva before the announcement. Experts predict a potential for sustained growth across crypto markets based on the positive impact of this deal.
The reduction in tariffs could signal an overall stabilization of global economies. This reduced risk of inflation has encouraged market stability and boosted trading confidence in various sectors, especially cryptocurrency.
Market analysts believe that this agreement may bring long-term benefits to global trade and financial technology.