Bitcoin is inching closer to a new all-time high, fuelled by fresh optimism surrounding a long-anticipated trade agreement between the United States and China. US President Donald Trump announced on Truth Social that the trade deal is “done,” pending final approval with Chinese President Xi Jinping.
The proposed agreement signals a potential end to years of tariff disputes that have shaken global markets. Trump confirmed, “We are getting a total of 55% tariffs, China is getting 10%,” adding that relations with China are now “excellent.”
Bitcoin Rallies on Trade Optimism
Following Trump’s announcement, Bitcoin surged to a 24-hour high just below $110,300 before retracing slightly to $109,560, according to TradingView. The positive sentiment surrounding the trade deal has boosted investor confidence, especially after months of economic instability driven by reciprocal tariffs.
Crypto markets have responded more favourably than Wall Street, where futures saw a slight decline despite the deal. Iliya Kalchev, an analyst at Nexo Dispatch, cautioned that while the agreement may ease rare earth tensions, “concrete policy shifts remain elusive.”
April Tariffs Sent Shockwaves
The recent optimism marks a sharp turnaround from the economic turbulence seen in early April. On April 2, Trump introduced new reciprocal import tariffs that triggered massive sell-offs in both traditional and crypto markets. Within days, Bitcoin dropped to a 2025 low of $74,434, and the S&P 500 shed over $5 trillion in market value, its worst decline on record.
This volatility also hit crypto venture capital activity hard. According to Cointelegraph, VC deals plunged to just 62 rounds in May, the lowest in 2025. Analysts attribute the slowdown to poor market sentiment and heightened uncertainty.
China Confirms Deal Framework
Chinese officials have also confirmed progress. Vice Commerce Minister Li Chenggang stated on Tuesday that both sides reached an “in-principle agreement” during negotiations in London. Talks were described as “candid and in-depth,” focused on finding mutually beneficial resolutions to trade disputes.
Global Macro Investor CEO Raoul Pal noted that much of the remaining negotiation talk may simply be “posturing,” suggesting the core of the deal is already settled.
If finalised, the trade deal could remove one of the largest macroeconomic threats facing crypto markets in 2025. With economic stability potentially returning, investor risk appetite may grow, setting the stage for Bitcoin to test new highs.
