Bitcoin Price Eyes ATH As US-China Tariff Tension Eases

Key Insights:

• The US and China agreed to suspend 24% tariffs for 90 days while retaining a 10% base tariff on goods.
• Bitcoin price surged past $104K following the US-China trade agreement, driven by improved market sentiment.
• Additional tariffs from April were canceled by both nations as part of the new trade agreement finalized in Geneva.

United States and China have reached a temporary trade agreement to ease escalating tariff pressures, suspending a 24% tariff on each other’s goods for 90 days while keeping a 10% base rate in place. Both sides have canceled additional tariffs introduced in April.

Negotiations in Geneva were instrumental in the signing of the deal to facilitate further discussion among economies. The news of the deal brought sharp gains in the cryptocurrency market, with Bitcoin going above $104000 due to a general uplift in market confidence.

Bitcoin Price Surge to $104K After US-China Tariff Truce

White House has announced that the United States will suspend a 24% tax on Chinese goods for 90 days. China has promised to put similar measures into effect. However, the existing 10% tariff on the affected goods will be maintained throughout the suspension.

The cancellation of additional tariffs introduced in April has contributed to a positive outlook in financial markets. Following talks in Geneva, the two sides decided to map out a common path for future negotiations. The resolution of trade controversies has led to an increase in Bitcoin USD.

After the statement, Bitcoin rose past $104,000. Experts believe that the increased investor confidence was the motivation behind the movement. Improved trade dynamics have helped reduce global market uncertainty. Signalling a bullish attitude among the crypto market participants, the Fear and Greed Index stood at 70.

Crypto expert Michaël van de Poppe hypothesized that Bitcoin USD’s recent sharp rise might indicate a forthcoming consolidation period. He added that altcoins could gain momentum because investors are diversified in the crypto marketplace. Moreover, the analyst also believes that Bitcoin is set to hit a new all-time high with the recent rally past $104,000.

Details of the Trade Agreement Finalized in Geneva

The agreement includes the suspension of the 24% tariff for 90 days and the cancellation of tariffs imposed through U.S. Executive Orders No. 14259 and No. 14266. China’s Ministry of Finance announced the suspension of its own 24% tariff for the same duration and cancellation of tariffs under announcements No. 5 and No. 6 issued in 2025.

Both governments are committed to reviewing and adjusting their trade policies by May 14, 2025. The announcement also included plans for future meetings to continue economic dialogue.

Earlier in April, the trade conflict intensified following a decision by President Donald Trump to raise tariffs on Chinese goods to 145%. China responded by increasing tariffs on American goods to as high as 125%. This caused instability in financial markets and affected over $600 billion in bilateral trade.

Financial Markets React to Trade De-Escalation

The crypto market reacted quickly to the trade agreement. Bitcoin price crossed the $104,000 mark shortly after the official announcement. Ethereum also saw gains, crossing $2,500. Analysts attributed this to reduced geopolitical risk and improved market liquidity.

Rekt Capital, a crypto trader, observed that the price breakout followed a previous liquidity sweep and retest of demand levels. Bitcoin formed a higher low structure before breaking key resistance levels. These technical patterns contributed to the confidence behind the rally.

White House economic adviser Kevin Hassett confirmed that the agreement was approved by President Trump. He also stated that the administration is working on similar trade deals with other countries, modeled after the current U.S.-China framework.

The current trade agreement is a temporary framework to facilitate ongoing negotiations. Both parties plan to reassess the tariff structure and trade policy commitments by mid-May.

A recent report highlighted what to expect from the Bitcoin price as global tariff tensions ease and broader macroeconomic shifts unfold. Analysts suggest that BTC may still be in the bullish phase of its current cycle, with potential for another rally toward a cycle peak, driven by institutional demand, ETF momentum, and possible government adoption.

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