Crypto markets rallied sharply on Monday after the United States and China announced an agreement to temporarily reduce tariffs on each other’s goods, signaling a cooling of trade tensions.
The agreement, delivered via a joint statement in Geneva, provides a 90-day window for both countries to negotiate further economic cooperation, according to Bloomberg.
According to the deal, the U.S. will lower tariffs on Chinese imports from 145% to 30%, while China will reduce duties on American goods from 125% to 10%.
Global Markets, Crypto Surge on News
The news sparked immediate reactions across global markets.
The Hang Seng Index climbed 2.7%, while the Hang Seng Tech Index jumped 4.5%, reversing losses from the April 2 tariff escalation.
The Bloomberg Dollar Spot Index also rose 0.3% as the U.S. dollar strengthened against the euro and yen.
Bitcoin (BTC) surged to $105,322, gaining 1.62% over the past 24 hours and 11.35% over the past week, according to data from CoinMarketCap.
Ethereum (ETH) followed suit, rising 3.13% on the day to $2,560, up over 40% in the past seven days. Dogecoin (DOGE) led altcoin gains, climbing 6.29% daily and a staggering 42.5% weekly.
The total crypto market capitalization is now $3.38 trillion, up 2% on the day, while market sentiment remains bullish with the Fear & Greed Index showing a score of 73 (Greed).
Trending coins like MOODENG and GOAT also recorded gains of over 50% in the past 24 hours, indicating a risk-on environment.
While the tariff reductions are temporary, market observers see this as a potential turning point in U.S.-China relations.
Washington and Beijing have been locked in a trade standoff since early April, when former President Donald Trump reinstated steep tariffs. This joint action marks the first significant move toward de-escalation.
Despite optimism, Southbound investors were seen taking profits, with nearly HK$13 billion in outflows. Still, crypto traders appear undeterred, with volume across BTC and ETH topping $70 billion combined.
If negotiations hold and a longer-term trade agreement follows, analysts expect further upside across both equities and digital assets.
Trump Wants China to Stay Out of the Crypto Space
Last week, Trump said that he sees crypto as a critical area in maintaining American dominance and preventing China from gaining control.
“I’m a big fan of crypto because I want to keep it away from China,” Trump said on Sunday evening, addressing the issue while returning to the White House from Palm Beach, Florida.
His comments come amid a rising tide of competition between the US and China, particularly in the fields of artificial intelligence, blockchain and other technological advancements.
Trump added that crypto is “a whole new thing that started, you know not so long ago,” further showing the sector’s rapid rise.
He expressed concern that China’s growing influence in technology could extend into cryptocurrency unless the US actively counters this trend.
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