US-China Tariff Cuts Spark Bitcoin Surge to $104,500
1min read After two days of trade talks in Geneva, the US and China have agreed to reduce tariffs, with the US cutting Chinese tariffs to 30% and China reducing its tariffs on the US to 10%. This agreement comes after a prolonged trade battle where the US imposed 145% tariffs on China, and China responded with 125% tariffs on the US. The conciliatory tone from both sides marked a significant shift in the trade dispute.
Treasury Secretary Scott Bessent and US trade representative Jamieson Greer reported substantial progress in the talks, describing them as productive and constructive. The agreement aims to foster fair trade between the two nations and address the US $1.2 trillion trade deficit. The tariff cuts are set to be in effect for a 90-day pause, starting on 14 May, with the possibility of continuation or lifting depending on the success of subsequent trade talks.
Bitcoin (BTC) has shown a positive response to the trade deal news, reaching $104,500 early on Monday. Initially, BTC surged to $105,700, indicating a potential rise to the $109,000 all-time high. However, the news of a 90-day pause on tariffs caused the price to drop back to just above $104,000. The current price action is within an ascending channel, and if the $104,250 resistance can be flipped into support, the price may continue to rise.
On the 4-hour chart, the Stochastic RSI indicators are at the bottom, and the 8-hour is also moving down. These indicators could signal upside price momentum, especially when the US stock market opens later in the day. zooming out to the 2-week time frame, the last 2-week period's candle body closed slightly below the $104,400 resistance. However, if the current candle can hold above this level and move higher, it could be a positive sign for the bulls.
The Stochastic RSI shows a strong cross-up in the indicators, and the Relative Strength Index at the bottom of the chart also displays a cross-up. The reaction of the traditional market to the US-China trade news will be crucial. If stocks spike higher, it is likely that the crypto market will follow suit, potentially driving Bitcoin towards its all-time high.
Ask Aime: What impact will the US-China trade deal have on the stock market?
