Bitcoin Surges 27% Amid U.S.-China Tariff Cuts

As the trade tensions between the United States and China began to ease, with both countries slashing tariffs by over 100%, Bitcoin emerged as a standout performer in the financial markets. This development has sparked significant interest among traders and analysts, who are closely monitoring how the digital asset responds to the changing geopolitical landscape.

On May 11, U.S. Treasury Secretary Scott Bessent announced that substantial progress had been made in trade talks between the two nations. As part of the agreement, the United States will reduce tariffs on most Chinese goods from 145% to 30% for a period of 90 days. In response, China will lower its tariffs on American imports from 125% to 10% for the same duration. Both sides hailed this move as a significant step forward in resolving years of trade disputes.

While the diplomatic efforts were underway, the crypto community was particularly interested in how Bitcoin would react to these developments. In April, when global markets were rattled by new tariffs, Bitcoin demonstrated remarkable resilience. The digital currency surged from $75,000 to nearly $95,000, marking a 27% increase in less than a month. In contrast, major stock indexes such as the S&P 500 and Nasdaq experienced declines, leading many to speculate that Bitcoin is increasingly being viewed as a safe haven asset, similar to digital gold.

Some analysts had suggested that countries might be turning to Bitcoin to circumvent tariffs, which could explain its strong performance. However, popular crypto trader Daan Crypto believes that the real test for Bitcoin begins now, as the trade tensions between the U.S. and China have cooled off, indicating that something more significant might be at play.

Despite the ongoing economic uncertainty and trade tensions, Bitcoin continues to show strong signs of growth. On May 9, Bitcoin recorded $401.2 million in inflows, with outflows much lower at $79.8 million. Leading the inflow charge was BlackRock with $356.2 million, followed by Fidelity with $45 million. In just one week, Bitcoin ETFs saw $1 billion in total inflows, pushing the price of Bitcoin back up to $105,783, a 12% increase. This surge in investor confidence is notable, especially as the U.S. and China work to ease trade tensions.