The US and China have temporarily reduced tariffs, easing trade war tensions, pushing Bitcoin and altcoins higher as analysts share mixed takes.
Over the weekend, the White House confirmed the cooling down of the trade war, with US-China trade talks reaching a crucial stage. As the trade tensions between the two largest global economies cool down, there’s renewed optimism in Bitcoin BTC $106 512 24h volatility: 1.2% Market cap: $2.12 T Vol. 24h: $22.78 B and altcoin investors. However, market analysts share mixed opinions on this development.
Will US-China Trade Talks Benefit Bitcoin?
In a major de-escalation of the tariff war kick-started by President Donald Trump, the US and China have finally agreed to lower tariffs on each other’s products. The United States has announced a temporary reduction in tariffs on Chinese goods, lowering rates from 145% to 30% for the next 90 days. In response, China is reciprocating by cutting tariffs on U.S. goods from 125% to 10% for the same duration.
Popular crypto trader Daan Crypto noted that during the peak of the trade war at “Liberation Day” in April last month, Bitcoin outperformed stocks and held up “incredibly strong”. He said that after plunging to $75,000 in early April, BTC price recovered 27% to 495,000 by the month-end. On the other hand, top US indices like the S&P 500 and the Nasdaq faced a net decline.
He said that during the trade war in April, experts believed that Bitcoin played a crucial role as a hedge to bypass tariffs. However, if the trade deal is confirmed, the opposite should happen. Daan Crypto stated:
“Theoretically speaking, if the trade uncertainty was what was making BTC outperform, it should stop outperforming after we hit the most important deal, which includes China.”
Daan concluded that if Bitcoin continues its strong performance, “it’s reasonable to assume that tariffs likely have minimal direct influence on how BTC is perceived or utilized”.
BTC Price Needs This Weekly Close to Confirm Uptrend
Following the development in the US-China trade talks on Sunday, BTC price made a quick jump to $105,000, with analysts predicting a potential all-time high very soon. Prominent crypto analyst Rekt Capital has highlighted Bitcoin’s pivotal position and a potential breakout ahead. According to the analyst, Bitcoin is on the verge of securing a weekly close above the range high of its recently reclaimed re-accumulation range. Achieving this milestone, at approximately $104,500, could set the stage for a significant price surge.
Are you ready for Price Discovery Uptrend 2?
Bitcoin is a Weekly Close above ~$104500 away from breakout$BTC #Crypto #Bitcoin https://t.co/os0jw3oS1O pic.twitter.com/joZSavPQ6h
— Rekt Capital (@rektcapital) May 11, 2025
The analyst emphasized that such a move would mark the beginning of “Price Discovery Uptrend 2”, signaling Bitcoin’s entry into a new phase of uncharted territory.
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