The new U.S.-China tariffs agreement on May 11, 2025, positively impacted global markets, including digital assets, as announced by respective leaders and key industry figures.
This agreement is crucial for stabilizing international trade, spurring optimism in both traditional and digital markets, with cryptocurrencies showing rapid positive responses globally.
U.S.-China Commit to Fairer Trade Practices
The U.S.-China tariffs agreement, announced by President Joe Biden and China’s Vice Premier Liu He, seeks to facilitate fairer trade practices. Both leaders expressed confidence in fostering mutual economic growth while stabilizing global financial markets.
The agreement implies significant changes in tariffs, affecting global trade dynamics. Katherine Tai, United States Trade Representative, emphasizes a level playing field for U.S. businesses. The markets reacted with increased confidence, impacting various sectors, including cryptocurrencies.
Crypto Gains as BTC and ETH Prices Surge
Leading industry figures, including Brian Armstrong of Coinbase and Binance’s CZ, noted the positive impact on crypto markets. BTC and ETH saw price surges, while Asian exchanges noticed heightened activity.
Increased trade certainty is also expected to foster regulatory scrutiny. According to the CFTC and SEC, these developments will closely monitor digital asset markets to ensure ongoing compliance and investor protection.
Bitcoin Acts as Safe Haven Amid 2025 Trade Talks
Past U.S.-China tariff negotiations led to a “flight to quality” phenomenon, as observed in 2019/2020. These trends typically involve investors seeking safe-haven assets like Bitcoin amid tensions, with equities receiving preference during de-escalation.
Experts, including Raoul Pal and Venture Capitalists, suggest this move could sustain macro optimism across digital currencies. Historical data also supports a strong correlation between risk-on equities and Bitcoin performance.
Risk-on in equities is almost always mirrored in digital assets – strong correlation playing out again today.
Raoul Pal, CEO of Real Vision, Macro Analyst, remarked:
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