Bitcoin is closing in on a new high, buoyed by renewed optimism that the United States and China have reached a final agreement on their long-awaited trade deal.
The world’s largest trading economies have nearly completed their trade agreement, according to a Wednesday post on Truth Social by US President Donald Trump.
“Our deal with China is done, subject to final approval with President Xi and me,” Trump said. “We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent.”
While the US-China deal “appears to defuse some tensions over rare earth exports, concrete policy shifts remain elusive,” said Nexo dispatch analyst Iliya Kalchev, who told Coinpectra that Wall Street futures saw a minor decline after the news.
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Bitcoin (BTC) price peaked at a 24-hour high below $110,300, before retracing to $109,560 as of 1:04 pm UTC on Wednesday, TradingView data shows.
“Almost all the other tariff negotiations and rhetoric are all about getting China to agree to a deal,” said Global Macro Investor founder and CEO Raoul Pal.
The rest of the negotiations may only be “posturing” for a trade agreement with mainland China, he wrote in an April 8 X post.
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US-China agree to trade framework: Chinese minister
On Tuesday, China’s Vice Commerce Minister, Li Chenggang, said the two sides have reached an in-principle agreement to resolve trade disputes through mutually beneficial cooperation.
The two sides had “candid and in-depth talks” during the London negotiations, Chenggang told Chinese news outlet Chinadaily.
The developments may provide significant relief for crypto investors since Trump’s reciprocal trade tariffs were seen as the biggest macroeconomic threat to traditional equities and cryptocurrency markets in 2025.
Bitcoin briefly fell to a year-to-date low of $74,434 on April 7, five days after Trump announced his reciprocal import tariffs on April 2, which resulted in the S&P 500 losing more than $5 trillion in value, its largest drop to date.
Tariff-related uncertainty also affected venture capitalist (VC) appetite, with crypto VC deals falling to 62 investment rounds in May, marking a monthly low for 2025, Coinpectra reported.
The slowdown was mainly attributed to a “combination of market prices and sentiment,” as both took a hit on the “deterioration of tariff rhetoric,” said Aurelie Barthere, principal research analyst at crypto intelligence platform Nansen.
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