Bitcoin News Today: U.S.-China Trade Truce Boosts Ties While Crypto Markets Stay Unmoved

China-U.S. Economic Collaboration Gains Momentum Without Crypto Impact

The U.S. and China have taken a significant step toward easing trade tensions, with President Donald Trump and President Xi Jinping announcing a one-year trade agreement that includes tariff reductions and commitments to stabilize rare earth element exports. The deal, finalized during their meeting in South Korea, saw U.S. tariffs on Chinese goods cut to 47% from 57%, while Beijing pledged to halt retaliatory tariffs and restrict fentanyl exports. Trump also highlighted progress on resolving disputes over rare earth materials, critical for high-tech manufacturing, according to a CryptoNews Australia report. The agreement, described by the White House as a "comprehensive framework supporting American industries," aims to reduce global supply-chain strain and stabilize markets, according to a Yahoo Finance article.

Despite the diplomatic breakthrough, the cryptocurrency market showed a muted response. Bitcoin, which had briefly dipped below $108,000 following the Federal Reserve's rate cut, rebounded slightly but remained flat around $110,785. Analysts attributed the lackluster reaction to the market having already priced in the trade news and Fed decision, per the CryptoNews Australia report. On-chain data revealed increased selling pressure from veteran holders, with whales transferring billions in Bitcoin to exchanges, signaling a shift in market dynamics, according to a CryptoBasic report. Michael Saylor, founder of MicroStrategy, however, continued his aggressive Bitcoin accumulation, hinting at a 13th purchase as his firm's holdings surpassed $71 billion, as reported by Blockchain Magazine.

The U.S. Senate is simultaneously advancing legislation to clarify digital asset oversight. The Crypto Market Structure Bill, nearing release, would assign the Commodity Futures Trading Commission (CFTC) jurisdiction over spot markets and digital commodities, while the SEC would regulate securities. The bill also updates compliance rules for stablecoins and decentralized finance (DeFi), reflecting bipartisan efforts to create a predictable legal framework for the industry, according to CryptoNewsLand. Lawmakers from both parties have emphasized the need for regulatory clarity, with Coinbase CEO Brian Armstrong noting that 90% of the bill's issues had been resolved, per CryptoNews.

Beyond the trade deal, broader economic cooperation between the U.S. and China is expanding. China and South Korea signed a $49.24 billion currency swap agreement to stabilize financial markets and reduce reliance on the U.S. dollar. The pact, part of six memorandums of understanding (MOUs) signed during Xi's visit to Seoul, also aims to deepen trade and green technology collaboration, according to Cryptopolitan. Additionally, China proposed a World Artificial Intelligence Cooperation Organization at the APEC summit, calling for AI to be treated as a "public good," according to TechInformed.

While the trade agreement and regulatory developments highlight growing economic alignment, crypto markets remain insulated from these shifts. The U.S. Senate's focus on structured regulation contrasts with China's continued crypto restrictions, though Hong Kong's emergence as a regulated crypto hub offers some optimism for projects like NEO. However, analysts stress that significant price pumps for Chinese-linked tokens would require policy changes, such as full crypto legalization in Beijing, according to a Yahoo Finance report.

The U.S.-China economic partnership is now complemented by military cooperation channels, with defense ministers agreeing to de-escalate tensions and prevent conflicts. This follows Trump's assertion that collaboration with China could make America "great again," as reported by Lookonchain. Together, these moves signal a recalibration of U.S.-China relations, prioritizing stability and mutual economic growth over recent adversarial postures.