Crypto: the trade agreement between China and the United States revives optimism

After months of trade tensions, the United States and China agreed with a 90-day break in their trade war, after a two-day meeting in Geneva. The prolonged conflict has already impacted the financial markets, including the crypto.

The United States will reduce prices on Chinese imports from 145 % to 30 %. This follows a decision to suspend the current prices for 90 days, based on an agreement concluded by both parties. In a statement Spouse, the two countries have declared that they wanted to build a solid and sustainable commercial partnership.

China has also agreed to reduce its prices on American products, bringing them from 125 % to 10 %. It will also remove the additional prices imposed earlier this year. This temporary reduction is a sign of progress in the appeasement of trade tensions. China has also agreed to suspend the retaliation measures it had set up in response to the increase in prices. She said:

Adopt all the administrative measures necessary to suspend or remove non-pricing retaliation measures taken from the United States since April 2, 2025.

A system will also be set up to continue discussions on their economic and commercial relations. These discussions will be carried out by representatives of both parties: He Lifeng, Vice-Prime Minister of China, will represent China; Scott Bessent, American secretary to the Treasury, and Jamieson Greer, commercial representative of the United States, will represent the United States.

Meetings will be held either in China, the United States, or in a third country, according to a mutual agreement. They wrote:

After taking the actions mentioned, the parties will establish a mechanism to continue discussions on economic and commercial relations. The Chinese representative for these discussions will be He Lifeng, Deputy Prime Minister of the Council of State, and the American representatives will be Scott Bessent, secretary of the Treasury, and Jamieson Greer, commercial representative of the United States. These discussions may take place alternately in China and the United States, or in a third country with the agreement of the parties. If necessary, the two parties will be able to keep consultations at the operational level on relevant economic and commercial issues.

Many see this reduction in prices as a positive development. Trade wars are often linked to tariff decisions, and this break delighted the hopes of a more fluid trade between the two nations.

Could the commercial truce stimulate the growth of crypto and mitigate inflation?

The Crypto market reacted positively to this last evolution. Bitcoin has climbed over $ 104,000, marking its highest price in months, while Ethereum has returned above $ 2,500. Dogecoin has also recorded an increase of 10 % in the last 24 hours.

Kobeissi Letter, a publication of market comments, has note that Nasdaq's term contracts increased by 3 % in response to this news.

Commercial peace is often good news for crypto. The lightening of prices could slow down inflation, which could lead the federal reserve to consider a drop in interest rates. And lower rates generally stimulate interest in risky assets such as Bitcoin. This could prepare the ground for the BTC to reach or even exceed its historic record of $ 109,000, triggering a training effect on other altcoins.

In addition, the Crypto Fear and Greed index rose to 70 %, showing a rise in optimism of investors and an increase in the FOMO (Fear of Missing Out). This could push the crypto feeling even higher and keep the market in bullish territory.

According to a weekly report published by Bybit, the last time Bitcoin has crossed $ 100,000 for the first time since February, this was influenced by the trade agreement between the United States and the United Kingdom. This suggests that a solid agreement with China could have an even greater impact on the Crypto market.