Key Takeaways
- Bitcoin price nears new high amid US-China trade deal.
- President Trump announces near-final trade agreement with China.
- Market reactions mixed as concrete policy changes remain elusive.
bitcoin price spikes amid trade deal optimism
Bitcoin is nearing a historic high, driven by optimism over a potential trade agreement between the United States and China.
President Donald Trump announced on Truth Social that a deal is nearly finalized, stating:
Our deal with China is done, subject to final approval with President Xi and me. We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent.
Bitcoin impact
The anticipated agreement between the world’s largest trading nations could resolve ongoing economic tensions that have impacted global markets, including bitcoin.
Following Trump’s announcement, bitcoin’s price reached a 24-hour peak just below $110,300 before settling at $109,560, according to TradingView data.
Market reactions
Despite the positive news, Nexo dispatch analyst Iliya Kalchev noted that Wall Street futures saw a slight decline, suggesting that while the trade deal may ease some tensions, concrete policy changes remain undefined.
Raoul Pal, CEO of Global Macro Investor, commented that recent negotiations could be “posturing” for an eventual agreement with China.
On the Chinese side, Vice Commerce Minister Li Chenggang confirmed that both nations have reached an in-principle agreement to address trade disputes through cooperation.
These developments are seen as potentially significant for bitcoin investors since recent tariff announcements had depressed market sentiment, causing bitcoin’s price to drop to a year-to-date low of $74,434 in early April.
The ongoing trade discussions have also affected venture capital activity in the bitcoin space, with a decline in investment rounds observed in May.
