Bitcoin eyes record high as US-China tariff tensions ease

May 12, 2025

Bitcoin eyes record high as US-China tariff tensions ease

Bitcoin is edging toward a new all-time high following the US and China agreement to a temporary truce in their prolonged trade war. The breakthrough came on Monday, May 12th, around 2:30 AM EST, following weekend talks in Geneva, with both countries suspending their steep tariffs for 90 days.

The trade agreement includes a rollback of US tariffs on Chinese goods from 145% to 30% and a corresponding cut by China from 125% to 10% on American imports. The White House characterized the deal as a "reset" that opens the door to further negotiations, though officials stressed that much work remains.

The news brought a wave of relief to investors, sending US stocks soaring and giving Bitcoin a new boost. After hovering between $102,000 and $105,000 over the weekend, BTC struggled to break resistance. But by Monday 2:00 AM, following the trade truce news, it was holding around $104,000. Within 90 minutes, it surged nearly $2,000, peaking just shy of $106,000 by 3:20 AM.

While the rally briefly lost momentum before breaching the key resistance of $106,000, it marked one of Bitcoin's strongest hourly moves in recent weeks.

The move underscores Bitcoin’s evolving role as a macro-sensitive asset. As global risk sentiment improved, S&P 500 futures jumped, breaking above the key $5,800 level and edging toward $5,900, territory last seen before the tariff war escalated in early March. The synchronized rally highlights how Bitcoin is increasingly trading like a high-beta macro hedge, reacting not just to crypto-specific news but to broader geopolitical shifts as well.

As hopes rise for broader trade normalization and easing geopolitical tensions, risk assets could finally get the runway they need to push higher. With BTC hovering between $103K and $105K, Monday’s rally might just be the first leg of a breakout, setting the stage for a potential run toward $110K by month’s end, especially if buying momentum holds and more bullish headlines follow.

The real test, though, will come with a permanent trade deal. A full resolution, beyond this 90-day pause, could be the spark that propels Bitcoin past its $108.5K all-time high and unlocks even greater upside in Q2. In short: Monday’s surge was a clear reminder that when macro tailwinds align, Bitcoin doesn’t wait around.

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