Bitcoin price is rallying once again, this time fueled by a major geopolitical shift: the U.S. and China have agreed to a 90-day reduction in trade tariffs — and the crypto market is responding fast. As optimism spreads across global markets, Bitcoin has climbed back above $104,000, with analysts already speculating on a potential breakout toward the $150K mark.
The Bitcoin U.S.–China trade deal narrative is gaining traction after the announcement that the U.S. will slash tariffs on Chinese goods from 145% to 30%, while China cuts levies on U.S. imports from 125% to just 10%. The short-term easing of tensions between the world’s two largest economies is being celebrated as a diplomatic win — and a strong bullish signal for risk-on assets like crypto.
But can this fragile truce truly push Bitcoin to new all-time highs? Let’s break down what just happened, how the market is reacting, and what this means for BTC’s path ahead.
U.S.–China Trade Truce: What the Agreement Includes
On May 12, both countries officially confirmed a 90-day tariff reduction. The deal, brokered under the leadership of former President Donald Trump, was announced via several media outlets and confirmed on social media by Crypto Rover, a widely followed analyst on X.
The deal also includes provisions to curb the export of fentanyl-linked chemicals, a point of contention that had recently drawn criticism from U.S. policymakers. The fentanyl clause represents a symbolic step toward cooperation on transnational issues beyond economics.
According to a BBC report, this move is aimed at stabilizing global trade and preventing further economic escalation. While temporary, the impact is already rippling through financial markets.
Why Bitcoin Reacted First — and Strongest
Traditional markets such as equities and commodities welcomed the news with moderate gains, but crypto moved faster and harder. Bitcoin, in particular, saw a surge in volume and volatility, pushing its price back above $104,000 within hours.
This stronger reaction is not a coincidence. Bitcoin, as a borderless and decentralized asset, is uniquely sensitive to changes in global sentiment. When macro risk decreases — as it does during moments of diplomatic cooperation — capital often flows into high-upside assets like crypto.
Moreover, the tariff rollback eases fears of inflation and supply chain disruptions, which boosts investor confidence. The correlation between geopolitical tension and Bitcoin volatility is becoming more pronounced, and this week’s news proves it once again.
$150K in Sight? What the Technicals Say
Technically,Bitcoin price remains in a bullish posture. After breaking the psychological $100K level last week, BTC has been consolidating between $103,000 and $105,700. Analysts are watching $107,000 as the next major resistance — a breakout above that could open the door to retesting all-time highs.
Source: Tradingview
From a macro perspective, the timing is ideal. The dollar index (DXY) has softened slightly, ETF inflows remain steady, and institutional sentiment is leaning risk-on. With fewer headwinds and improving global optics, the path to $120K–$150K is gaining credibility among traders.
On-chain data also shows accumulation zones growing around the $100K mark, reinforcing the idea that large holders are preparing for the next leg upward.
Final Thoughts: Bitcoin’s Macro Moment Has Arrived
This week’s developments highlight just how much Bitcoin has matured. No longer driven solely by halving cycles or exchange listings, BTC now responds to international diplomacy and macro policy shifts.
The U.S.–China trade deal may be temporary, but its psychological impact is powerful. It reinforces the idea that Bitcoin is a legitimate hedge, not just against inflation, but against geopolitical instability itself.
Whether or not BTC reaches $150K in the short term, one thing is clear: its price is now deeply connected to the global stage — and that makes every international headline worth watching.
