Bitcoin News Today: Bitcoin Surges 7.13% to $123,205 as U.S.-China Trade Tariff Truce Extended 90 Days

Bitcoin’s price surged past $123,205 in early July 2025 following reports of a 90-day extension of the U.S.-China trade tariff truce, marking a significant rebound from earlier volatility that saw the cryptocurrency dip below $115,000 on July 20 [3]. The truce, confirmed through informal channels but lacking formal statements from either government, temporarily alleviated fears of escalating global trade tensions and spurred risk-on sentiment across markets [6]. Analysts attributed the rally to speculative positioning ahead of the extended pause, which was discussed during high-level negotiations in Stockholm and Sweden [4].

The agreement, which includes potential reductions in tariffs—such as China’s reported consideration to suspend a 125% tariff on certain U.S. imports—signaled a tactical de-escalation in a months-long standoff. U.S. Treasury Secretary Scott Bessent emphasized the truce as a step toward “comprehensive negotiations,” while Chinese Vice Premier He Lifeng was central to the discussions [1]. Despite the absence of direct statements from major crypto figures, the market interpreted the move as a positive catalyst for digital assets, with Bitcoin and Ethereum both rising. However, profit-taking moderated the initial surge, drawing capital back into equities and other traditional assets [2].

The cryptocurrency’s performance highlighted its growing role as a hedge against geopolitical instability. Michael Saylor, CEO of MicroStrategy, reiterated his firm’s Bitcoin accumulation strategy, framing the asset as a store of value amid unpredictable trade policies [2]. Broader implications extended to global supply chains, with China’s rare-earth magnet exports surging 158% in the truce’s wake [9]. Yet, analysts cautioned that the 90-day pause was not a structural resolution. “This is a tactical pause, not a structural shift,” one expert noted, pointing to unresolved disputes over tech trade controls and intellectual property [7].

The market’s reaction underscored the interconnectedness of trade negotiations and digital asset valuations. While the truce provided short-term relief, uncertainties lingered over its durability. Trump’s proposed 50% tariffs on EU imports and ongoing U.S. discussions with Brazil and Japan added layers of complexity [1]. Meanwhile, the U.S. Federal Reserve’s upcoming policy decisions on inflation and interest rates could further shape Bitcoin’s trajectory [8].

As the 90-day period progresses, stakeholders will monitor for signs of renewed tensions. A failure to formalize a permanent resolution could reignite volatility across trade-related assets and broader financial markets. For now, Bitcoin’s rally reaffirms its sensitivity to geopolitical developments and its evolving role as a barometer for global economic sentiment.

Sources:

[1] Yahoo Finance - [url: https://finance.yahoo.com/topic/tariffs/]

[2] CoinGape - [url: https://coingape.com/]

[3] The Coins (Fortune) - [url: https://fortune.com/section/the-coins/]

[4] Bloomberg (Telegram) - [url: https://t.me/s/bloomberg?before=2972]

[5] Reuters - [url: https://www.scmp.com/author/bloomberg]

[6] SCMP Reports - [url: https://www.scmp.com/author/bloomberg]

[7] Yahoo Finance (Expert Analysis) - [url: https://finance.yahoo.com/]

[8] Bloomberg - [url: https://bloomberg.com/canada]

[9] Instagram Post - [url: https://www.instagram.com/p/DMk4xAISyEq/]