Bitcoin Approaches New High As Trump Announces US-China Trade Deal

Bitcoin nears new record high driven by optimism over new US-China trade deal. Trump announces trade agreement on Truth Social. However, analysts express caution about the actual impact. Recent shipping tariffs have added volatility to crypto, with significant drops noted in VC investments.

Bitcoin is edging closer to a new record high, driven by a wave of optimism surrounding a potential trade deal between the United States and China. This buzz comes on the heels of a June 11 post from US President Donald Trump on his platform, Truth Social, declaring that the long-awaited agreement is nearly finalized.

“Our deal with China is done, subject to final approval with President Xi and me,” Trump stated. He added, “We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent.” However, analysts caution that, despite the apparent thaw in trade tensions, concrete policy changes remain uncertain.

Nexo analyst Iliya Kalchev remarked to Cointelegraph that even though the deal seems to calm nerves regarding rare earth exports, Wall Street futures dipped slightly after the announcement. Bitcoin (BTC) reached a 24-hour peak just under $110,300 but has since pulled back to $109,560 as of 1:04 p.m. UTC, according to TradingView data.

Raoul Pal, founder and CEO of Global Macro Investor, indicated that a lot of current tariff discussions are mainly about getting China to finalize the deal. In a post on April 8, he suggested that much of the ongoing negotiations might merely be “posturing” for reaching an agreement with China.

On Tuesday, Chinese Vice Commerce Minister Li Chenggang announced that the two nations have reached an in-principle agreement aimed at solving their trade disputes through cooperation. During the London negotiations, Chenggang noted that the talks were candid and in-depth, shedding light on the direction of US-China economic relations.

These developments could ease the anxiety among crypto investors, who have been jittery after Trump’s reciprocal trade tariffs were seen as a significant threat to both traditional equities and cryptocurrency markets for 2025. In fact, Bitcoin dropped to a year-to-date low of $74,434 on April 7, just days after Trump announced tariffs on April 2, which led to the S&P 500 plummeting more than $5 trillion in value—a historic drop.

Moreover, the uncertainty around tariffs has seemingly dampened venture capital interest in crypto, with investment rounds falling to just 62 in May, marking a stark low for 2025, according to Cointelegraph. Aurelie Barthere, principal research analyst at Nansen, pointed to a combination of market prices and sentiment that took a hit from the negative tariff discussions as a key factor in this decline.

As the market rides the unpredictable wave of trade negotiations, many eyes are set on Bitcoin’s response and how it corresponds with broader economic indicators.

In summary, Bitcoin is inching closer to a new peak amid optimism surrounding a US-China trade agreement. Trump’s announcement hints at a breakthrough, which may calms market fears and could enhance cryptocurrency stability. However, analysts urge caution, as real policy changes remain vague. Recent tariff uncertainties have already created ripples in the crypto investment landscape, underscoring the challenges ahead for both Bitcoin and the broader economy.

Original Source: cointelegraph.com