Bitcoin and crypto jump after US-China deal

The two rival powers have agreed to a 90-day tariff pause and significant tariff reductions.

The two rival powers have reached an agreement on a 90-day tariff pause and sizable tariff cuts. Bitcoin and crypto are jumping.

During talks in Geneva, representatives from the U.S. and Chinese governments reached a deal in their trade dispute. Both sides will reduce the mutually imposed tariffs and implement a 90-day tariff pause. The crypto market moved higher.

The Bitcoin price rose 1.2% from the previous day to $104,600, while Ethereum climbed as much as 4.1% to $2,560. The total crypto market capitalization grew by 2.6%.

U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer already called Sunday evening the deal a “significant breakthrough.” A solid mechanism to prevent future escalations was also reportedly agreed upon.

Both traditional equities and the crypto sector had taken a hit from the trade war escalation. After the so-called “Liberation Day,” when the U.S. government implemented new tariffs, the Bitcoin price briefly dipped to $75,000.

According to China’s Ministry of Commerce, both sides now commit to implementing measures by May 14 at the latest. Non-tariff countermeasures that China had imposed on the U.S. since April 2 will also be lifted.

President Trump had imposed import tariffs of 145% on Chinese goods, to which Beijing retaliated with a 125% levy on various American products. The new U.S. tariffs are now reduced to 30%, and the Chinese tariffs to 10%.

Not only did the crypto market react positively; equities also showed a recovery. The S&P 500 rose 2.6% in premarket trading to 5,830, while the NASDAQ 100 gained 3.6%. The U.S. dollar also strengthened, pushing the EUR/USD rate down to 1.11.