Trump Declares Trade Win With China: More Upside for Crypto?

Key Insights

• A US-China trade deal has been announced by Trump, pending approval from President Xi Jinping.
• Bitcoin's recent price jump is linked to optimism around the trade deal. However, the rally was slowed by high tariff concerns.
• The trade agreement includes a 55% tariff on Chinese goods, which is higher than the previously discussed rates.
• There are some ongoing concerns that the high tariffs could negatively affect the US economy despite the trade deal.
• Bitcoin still holds strong technical support above $100,000 but faces resistance between $111,000 and $120,000.

Diplomatic tensions are now easing between the US and China, two of the world’s two largest economies.

Bitcoin is showing signs of renewed strength amid these developments. However, with hefty tariffs still in place, can the crypto market truly breathe easy?

A Trade Deal Hits the News

At the time of writing, Bitcoin is once again attempting to make a new all-time high.

This strength is due, in part, to the increasing optimism over an incoming end to the US-China trade standoff.

On Wednesday, US President Donald Trump announced that the two economic giants had finalized a new trade agreement.

This agreement, at the time of writing, is now pending approval from Chinese President Xi Jinping.

“Our deal with China is done,” Trump declared in a recent post on Truth Social. “We are getting a total of 55% tariffs; China is getting 10%. Relationship is excellent.”

While the announcement has boosted investor confidence across the board, the market’s reactions have been mixed so far. This is likely due to the current 55% tariff figure, which has left investors trying to balance optimism with caution.

Bitcoin’s Response and Why It Matters

Soon after Trump’s announcement, Bitcoin briefly surged to a daily high just under $110,300 before settling around $109,560.

Even though this upward movement was an improvement from earlier lows, the rally wasn’t as explosive as some traders had hoped.

The relatively sluggish price action of Bitcoin was likely due to investors fears about how such high tariffs would affect the economy as a whole.

For months, the trade dispute between the US and China has been a worrying factor for many investors, especially given the crypto market’s sensitivity to macroeconomics as of late.

For example, in early April, Bitcoin tumbled to a year-to-date low of $74,434 soon after Trump first announced new reciprocal tariffs.

On the same day, the S&P 500 lost over $5 trillion in value, which stands as its largest single-day drop in history.

A Deal, But Not Without Pain

Even though Trump’s announcement brought some relief, the deal itself has a few tough pills to swallow, especially for Chinese exports.

For example, there is now a 55% tariff on goods from China, which is much higher than the 30% rate floated during the negotiation period.

Many analysts fear that this could put long-term pressure on the US economy.

For example, Keith Alan, co-founder of Material Indicators, believes that these high tariffs could affect some positive economic indicators.

“Despite having a relatively positive economic report, and news that we almost have a trade deal with China, TradFi and Crypto Markets were slightly down on Wednesday,” he said in a recent post.

Alan also believes that the recent market pullback with Bitcoin is mostly due to investor concerns about how 55% tariffs will affect consumers and businesses.

“It’s going to be felt throughout every aspect of the U.S. economy, and it isn’t going to feel good.” he said.

Major Support Levels for Bitcoin

Despite these issues, technical indicators show that Bitcoin is still in a relatively strong position.

Analysts like Alan are watching the $100,000 mark, which is now considered as one of the most important support levels for Bitcoin.

So far, Bitcoin has managed to avoid closing below this threshold, which traders believe to be a sign of bullish strength.

Alan sees the 2025 yearly open as another important benchmark. “Support at the 2025 Yearly Open is my line in the sand,” he said.

In addition, the exchange order books shows heavy resistance between $111,000 and $120,000, while buy-side liquidity below $100,000 is relatively thin.

This indicates that Bitcoin could face some resistance in its climb higher. However, it still has room to consolidate above six figures.

Overall, the Bitcoin market will continue to monitor the final Approval of the Trade Deal.

Until the agreement is officially signed by both leaders, any positive momentum is still speculative, and investors must approach with caution.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.