Bitcoin Price Surges 20% as US-China Tariff War Eases

The Bitcoin price and the entire crypto and stock market have been significantly influenced by the tariff wars initiated by US President Donald Trump. The initial surge in tariffs on countries like China led to substantial market crashes, with the Bitcoin price plummeting below $80,000. However, recent developments indicate that the tariff wars may be nearing their conclusion, with the latest announcement from the White House regarding trade between the United States and China.

In April 2025, President Trump announced a significant increase in tariffs on Chinese goods to 145%, with over 180 other countries also experiencing tariff hikes. This move sparked widespread panic and retaliation, marking the beginning of what is now known as the ‘tariff wars.’ Subsequent discussions led to a 90-day pause on tariffs for most countries, except China. This pause had a positive impact on the market, allowing the Bitcoin price to recover and rise above $100,000, while the stock market also saw multiple days of gains.

Trade talks between China and the United States have been ongoing, and a temporary agreement has been reached. According to a statement on the White House website, both governments agreed to modify their respective tariff applications and implement a suspension of 24 percentage points of tariffs during the US-China Economic and Trade Meeting in Geneva. This agreement is set to last for an initial period of 90 days, providing both parties with time for further discussions toward a resolution. The statement emphasized the importance of mutual opening, continued communication, cooperation, and mutual respect.

The current rally in the Bitcoin price is driven by the positive news surrounding the tariffs. The agreement between the US and China stipulates that both countries should have implemented the tariff reduction by May 14, 2025. With the deadline approaching, this could trigger another rally in the Bitcoin price. As the news of the suspension spreads, it signals a period of at least three months without negative tariff-related news, boosting investor confidence in risk assets like Bitcoin. This renewed confidence could push the Bitcoin price above $110,000 as early as Wednesday.