Market experts gave their opinions on how the crypto market could react to the ongoing trade negotiations between the US and China as the marathon negotiation takes a new phase.
With the U.S.-China tariff negotiation progressing towards striking a deal, the Chinese delegation reportedly stated that the two economic giants will finalize the details of the trade consultation mechanism. Trade negotiations between the two countries are ongoing in Geneva, Switzerland, and a joint statement is expected to be published today. US Treasury Secretary Scott Bessent stated: “I’m happy to report that we’ve made substantial progress between the United States and China in the very important trade talks.”
As the negotiation reached a pivotal stage, market analysts had varying opinions. Crypto trader and Investor, Daan Crypto Trades, stated that if trade uncertainty was the reason that kept Bitcoin outperforming, then BTC should stop outperforming when a trade deal is struck. The trader wrote on X:
“Back then, people were wondering if a reason for the relative strength could have been the narrative that countries could potentially be using $BTC to bypass tariffs.
With a potential US & China Trade “Deal” teased/announced today, we could be seeing the answer to this question.
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.” As such, “it’s safe to assume that tariffs likely have little direct impact on how BTC is treated/used.”
In contrast to Daan’s view, Jeff Mei, chief operations officer at BTSE, stated that institutional investors become less apprehensive about investing in Bitcoin as the trade talks progress towards an agreement, with a likelihood of rate cuts. Jupiter Zheng, researcher at HashKey Capital, said that a consensus between the US and China on tariffs could create a stable market, which could potentially encourage investors to look at other assets.
BTC/USDT 1-Day Chart (Source: Tradingview)
BTC broke out after fluctuating inside a falling wedge. In a conventional breakout, the price of the coin or token usually increases by the height of the wedge during the early stages of formation of the wedge pattern(black arrow). However, in the case of BTC, it has gone above this stipulated mark, which is around $ 100 K. With the Bollinger band and the RSI signaling overbought conditions, there could be a market correction on the horizon for BTC. As such, Bitcoin, which is trading at $104.3K, might look for support near $103.4K
