Cryptocurrencies Surge as US-China Tariff Deal Boosts Market Confidence

Arthur Hayes, the chief investment officer of Maelstrom and former CEO of BitMEX, has expressed a bullish outlook on the cryptocurrency market. He urged investors to “buy everything” as US-China trade tensions eased following a major tariff deal. This agreement involved both nations slashing tariffs for 90 days, with the United States reducing import taxes on most goods from China from 145% to 30%, and China lowering levies on American goods from 125% to 10%. This development has boosted global market confidence and lifted the value of high-risk assets, including cryptocurrencies.

The improved trade relations have had a positive impact on the cryptocurrency market. Bitcoin, for instance, surged past $105,100, while Ether rose above $2,600. Major altcoins like XRP and ADA also saw increases, trading above their previous levels. This optimism in the market is a result of the bigger-than-predicted tariff reduction, which exceeded earlier expectations of 80% or 54%. The total value of cryptocurrencies increased by about 1% during this time, according to the data provided by CoinMarketCap.

Both the United States and China have agreed to dedicate the next three months to further talks, aiming to settle their disputes and halt the likelihood of future commercial disagreements. A structured process will be put in place to help maintain discussions on economic and trade issues. However, uncertainties persist regarding the form a final agreement should take to be deemed acceptable. China has previously pushed for the complete termination of tariffs the U.S. has set this year, and it is uncertain whether such a demand will be met.

Arthur Hayes’ optimistic views on cryptocurrencies align with the better global economic conditions now existing. Improved bilateral trade conditions, together with improved regulatory frameworks, are helping to restore investor optimism. When market uncertainty diminishes, cryptocurrencies could receive even greater attention and investment from an expanding community. The OCC, a U.S. government financial supervisory agency, delivered a major statement permitting national banks to participate in buying and selling cryptocurrencies on behalf of their customers and to hold customer cryptocurrencies through external custodial services. This decision is likely to bring in more institutional investors to cryptocurrencies.