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US-China deal sends BTC soaring past $105,000
Bitcoin has surged into the spotlight, rewarding its holders with a rally fueled by an unexpected geopolitical catalyst — an agreement between Washington and Beijing.
Talks between the United States and China, held in Geneva, proved to be unusually productive. As a result, China slashed tariffs on American goods from 125% to 10%. The US responded in kind, cutting its tariffs on Chinese imports from 145% to 30%. The agreement took effect on May 14 and is set to remain in place for 90 days.
Crypto markets cheered the development. Total market capitalization increased by 1%, and the world’s first cryptocurrency hit $105,000. Ethereum followed suit, confidently breaking above the $2,500 mark.
Arthur Hayes, chief investment officer at the digital asset investment fund Maelstrom, sees a green light across the board in the current environment. With trade tensions easing, he believes traders should "buy everything."
CoinPanel analysts echoed this sentiment. "Lower tariffs ease inflationary pressures and improve global liquidity conditions, both of which are typically bullish for BTC and other cryptocurrencies," they noted.
Despite the recent strong gains in BTC and ETH, volatility remains high across both assets. Nevertheless, analysts are not concerned. They view this turbulence as a sign that the market is alive and gearing up for significant moves in the months ahead. Against this backdrop, the outlook for most digital assets remains positive through the end of 2025.
© InstaFintech Group
