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US-China Trade War: Crypto Market In Spotlight as Tariff Concession Talk Resumes – Crypto News

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3 months ago

April 24, 2025

Dripp

US-China Trade War: Crypto Market In Spotlight as Tariff Resumes

The trade tensions between the US and the People’s Republic of China may be easing following President Donald Trump’s new comments, sparking renewed interest in global financial and crypto markets. Among the biggest gainers has been the cryptocurrency sector, which saw sharp movements after Trump’s remarks about reducing tariffs on Chinese goods.

US-China Tariff Negotiations Gain Momentum

After months of tense exchanges, President Donald Trump hinted at reducing tariffs on China during a press event at the White House. According to the update, President Trump said that while the high tariffs on Chinese goods would not be completely removed, they would come down substantially.

He noted that 145% was very high and that the two countries could have a better relationship. China, in turn, released a statement showing an interest in restarting trade talks. After weeks of heavy pressure on both economies, the move hinted at possible breakthroughs.

Commenting on the developing story, political and economic analyst Jostein Hauge emphasized that China holds a stronger position. He noted this as the country primarily exports high-tech goods to the United States.

He added that American exports to China are mostly low-tech products like fuels. This makes it easier for China to find new sources, while the United States could struggle to replace its Chinese imports.

Bitcoin Soars as Crypto Market Investors Makes Bold Bets

The financial and crypto markets have responded positively to the anticipated tariff truce between the two countries.

For example, Bitcoin extended its recent rally, reaching a new all-time high of $94,220 on April 23. Market predictions suggest that the Bitcoin price could crest at the $100,000 mark amid whale distributions.

It is worth noting that the current price outlook is partly driven by BTC ETF inflows, which hit $921 million, the highest daily figure since the ETF’s launch. The broader digital asset market also experienced a significant influx of investment, with total market capitalization surpassing $3 trillion.

Crypto market and altcoins such as XRP, Solana (SOL), and Cardano (ADA) also gained momentum. The memecoin market was not left behind either, as the Official TRUMP token surged 70%, reaching $14.56.

Traders are increasingly hopeful that easing tensions between the US and China could fuel a long-term rally in crypto assets.

Inflation and Interest Rates in Focus

The potential easing of US-China trade tensions could directly impact inflation and interest rate policies. With tariffs likely to decrease, the cost of imported goods may fall, reducing pressure on consumer prices.

A lower inflation outlook could give the Federal Reserve more space to slow down interest rate hikes. President Trump has called on Fed Chair Jerome Powell to lower interest rates.

Investors are now watching closely to see if these early talks will lead to a full agreement. For now, the crypto market is one of the biggest winners from the latest shift in the US-China trade war.

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