Crypto Market Surges 10% as US-China Trade Deal Boosts Bitcoin, Ethereum

The crypto market is experiencing significant gains today, driven by the news that the United States and China have finalized a comprehensive trade agreement, marking the end of a long-standing trade war that has caused global market instability for years. This geopolitical breakthrough has led to a surge in traditional financial markets, with the crypto market reacting even more strongly, as Bitcoin, Ethereum, and various altcoins all post double-digit gains. The trade deal covers a range of issues, including tariffs, semiconductor supply chains, and digital trade, which has restored trade flows and improved cross-border cooperation, particularly in the blockchain and financial technology sectors.

Analysts suggest that the reduction in global risk and clearer economic outlooks have encouraged institutional investors to reallocate capital into risk-on assets, including cryptocurrencies. The trade deal has created a "relief rally" environment that is particularly favorable for Bitcoin. Bitcoin is currently trading around $109,400, rising nearly 3% in the past 24 hours. After consolidating under $108K for most of the past week, the breakout comes as traders price in renewed optimism and macro clarity. With the next resistance near the $111K–$112K zone, bulls are eyeing a clean breakout.

Ethereum is outperforming Bitcoin today, jumping over 14% in 24 hours to reach above $2,700. Speculation around the SEC greenlighting a spot Ethereum ETF this month is heating up. Combined with the improved macro sentiment and strong staking data, Ethereum is attracting renewed interest from institutional and retail traders alike. Several altcoins are also performing well, especially those tied to potential ETF narratives or institutional utility. Solana is up 9%, testing $162 resistance, Avalanche is up 12% with a bullish reversal confirmed, and XRP is up 6%, fueled by ETF chatter and tokenization news. Even meme coins like Dogecoin and Pepe saw 5–10% gains amid the market-wide euphoria.

According to data from CoinShares and Fidelity Digital, crypto funds recorded nearly $7 billion in inflows over the last 30 days, reaching an all-time high of $167B AUM. The end of the trade war gives hedge funds and family offices more clarity on macro conditions, freeing them to rotate back into risk assets like Bitcoin and Ethereum. Major banks are also launching dollar-pegged stablecoins in the third quarter, while Coinbase reports surging demand for stablecoin-based remittances in Asia.

Today’s price spike is not just a flash pump—it’s tied to a major geopolitical shift that affects the global economy. If the peace holds, and if CPI data confirms cooling inflation in the US, crypto could enter a new bullish phase. However, traders should watch for potential fakeouts, especially with Bitcoin flirting with resistance near its all-time high. If bulls can reclaim $112K, we could see a surge toward $115K and beyond.