Bitcoin soars once again as global markets react to news of a newly finalized trade agreement between the United States and China. The digital currency surged close to a fresh all-time high on Wednesday, lifted by growing optimism among investors after former President Donald Trump announced the deal had been completed, awaiting only a final sign-off from Chinese President Xi Jinping.
Trump made the announcement on Truth Social, stating the agreement is “done,” although it still needs final confirmation from Beijing. He also mentioned that the U.S. will move forward with a 55% tariff on Chinese goods, while China will impose a 10% tariff in response. Despite the aggressive numbers, Trump added that relations between the two global powers remain “excellent.”
Bitcoin climbed to as high as $110,300 before easing slightly to $109,560, according to data from TradingView. Analysts link the latest surge in Bitcoin’s price to market relief after months of trade-related stress. The cryptocurrency had been under pressure since April 2, when Trump first announced plans for major tariffs. That move led Bitcoin to fall sharply, reaching a low of $74,434 just five days later.
Crypto markets have also seen a slowdown in investments, with venture capital activity hitting its lowest level this year in May. The uncertainty surrounding U.S.-China trade tensions had made investors cautious, reducing the appetite for risk in digital assets.
However, things began to shift this week after China’s Vice Commerce Minister confirmed that both countries had reached an “in-principle” agreement following discussions in London. The announcement signaled a more cooperative tone between the two sides, raising hopes that strained relations may be easing.
One analyst noted that while the deal doesn’t yet spell out all policy changes, “the fact that both sides are willing to come to the table and finalize something is what the market needed.”
Wall Street showed a mild reaction to the news, with futures dipping slightly, but many believe the deal’s impact on crypto could be more lasting if it leads to longer-term stability. Traders and investors alike are now watching closely to see if Bitcoin can push past its previous record and set a new benchmark for 2025.
