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Markets are cheering a tariff truce — and crypto may be the biggest winner.
A fresh 90-day tariff agreement between the US and China is setting the stage for a crypto and stock market rebound. Announced on May 12, both nations agreed to slash tariffs to 10% starting May 14, down from current levels of 34%.
This move is already boosting confidence across risk assets, including Bitcoin and altcoins.
A pause in the trade war
US Treasury Secretary Scott Bessent said at a Geneva press conference that both countries are working to avoid economic “decoupling.”
“We do want trade. We want more balance in trade,” Bessent stated.
The constructive tone of the negotiations removes the risk of “sudden re-escalation”, according to analysts. That’s good news for markets — especially altcoins and equities, which have lagged behind Bitcoin’s lead in recent months.
Bitcoin leads, but altcoins may catch up
Bitcoin is now 4.8% away from its all-time high of $109,800, per Cointelegraph data. With the trade tension cooling off, altcoins and US stocks are poised for a catch-up rally, says Aurelie Barthere, principal analyst at Nansen.
“Bitcoin has outperformed risk assets due to its insulation from tariff risks,” she added.
Tax cuts could supercharge gains
Barthere also flagged a potential tax relief package coming by mid-July, which could include:
• Extended expiring tax breaks
• New corporate and income tax cuts
She believes this would act as a “significant additional catalyst”, possibly pushing Bitcoin to $150,000, especially if an emerging bull flag pattern on weekly charts confirms.
