Cryptocurrency markets experienced a significant uptick on Monday following the announcement of a temporary tariff reduction agreement between the United States and China, indicating a potential thaw in ongoing trade tensions.
As detailed in a joint statement issued from Geneva, both nations have agreed to a 90-day period during which they will engage in discussions aimed at enhancing their economic collaboration, according to Bloomberg.
Under the terms of the deal, the United States will decrease tariffs on Chinese imports from an exorbitant 145% to a more moderate 30%. Simultaneously, China will adjust its duties on American goods from 125% down to 10%.
Global Markets React Positively
This announcement triggered immediate movements in global markets.
The Hang Seng Index saw a boost of 2.7%, and the Hang Seng Tech Index surged 4.5%, recovering losses incurred during the tariff escalation that began on April 2.
Additionally, the Bloomberg Dollar Spot Index advanced by 0.3%, reflecting the U.S. dollar’s strengthened position against both the euro and the yen.
Bitcoin (BTC) climbed to $105,322, marking a 1.62% increase over the last 24 hours and an 11.35% rise over the past week, as reported by CoinMarketCap.
Ethereum (ETH) also joined the rally, gaining 3.13% for the day to reach $2,560, which translates to an impressive over 40% increase over the last week. Not to be outdone, Dogecoin (DOGE) led altcoins with a daily increase of 6.29% and a staggering 42.5% gain weekly.
The overall cryptocurrency market capitalization now stands at $3.38 trillion, witnessing a 2% rise within the day, while the sentiment remains optimistic, indicated by a Fear & Greed Index score of 73 (Greed).
Emerging coins such as MOODENG and GOAT have also shown robust gains of over 50% within the past 24 hours, underscoring a favorable risk environment for investors.
Although the tariff reductions are intended as a temporary measure, analysts view this development as a potentially critical juncture in U.S.-China relations.
BREAKING: The US and China have reached a trade agreement on a 90 day pause.
The U.S. will cut tariffs on Chinese goods to 30% (from 145%) for 90 days, while China will lower its levies to 10% (from 125%) for 90 days, according to US Treasury Secretary Bessent. pic.twitter.com/5c7frxxNoW
— Sawyer Merritt (@SawyerMerritt) May 12, 2025
Since early April, when former President Donald Trump reinstated stringent tariffs, Washington and Beijing have been enmeshed in a trade conflict. This joint initiative represents a significant stride towards alleviating those tensions.
Despite the prevailing optimism, investors have begun to take profits, resulting in nearly HK$13 billion in outflows. In contrast, crypto traders remain steadfast, with Bitcoin and Ethereum trading volumes surpassing a total of $70 billion.
If the negotiations progress successfully and a more permanent trade solution is established, market analysts anticipate additional growth in both equity markets and digital assets.
Trump Advocates for U.S. Crypto Leadership
Last week, Trump expressed that he views the cryptocurrency sector as essential for retaining American economic superiority and preventing China from gaining ground in this emerging field.
“I’m a big fan of crypto because I want to keep it away from China,” Trump remarked on Sunday evening while returning to the White House from Palm Beach, Florida.
His remarks come amidst increasing competition between the U.S. and China, particularly in technological advancements such as artificial intelligence and blockchain.
He further commented that crypto represents “a whole new thing that started, you know, not so long ago,” highlighting the rapid evolution of the sector.
Trump voiced concerns about China’s expanding influence in technology potentially encroaching upon the cryptocurrency space unless the U.S. takes proactive measures to counteract this trend.
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