Bitcoin Breaks $105K as US-China Ease Tariffs in Surprise 90-Day Truce

A temporary cooling in trade tensions between the United States and China has sent shockwaves across global financial markets—and Bitcoin is riding the wave.

Following two days of closed-door negotiations in Geneva, mediated by the Swiss government, officials from both nations have agreed to slash tariffs on imported goods for a 90-day period starting May 14. The agreement aims to reset the tone of economic diplomacy between the world's two largest economies.

Under the deal, the US will cut tariffs on Chinese imports from a staggering 145% to a more manageable 30%, while China has pledged to reduce its duties on American products from 125% to 10%. The move comes amid efforts to address what the White House has termed a “national emergency” over its $1.2 trillion trade deficit.

Ambassador Jamieson Greer, the US Trade Representative, emphasized the urgency and outcome of the talks: “We moved quickly, which shows the gap between our positions may not have been as wide as presumed. This deal represents meaningful progress toward balancing trade.”

The announcement triggered an immediate surge across risk assets. Bitcoin jumped 1.25% in the hours following the news, topping $105,197—levels not seen since January 31. The flagship cryptocurrency now stands just 3.4% below its all-time high, signaling bullish momentum in digital assets.

Traditional markets also responded favorably. Futures on the S&P 500 climbed 2.5%, while the Dow Jones Industrial Average gained 2.2%. The tech-heavy Nasdaq led the charge with a 3.1% spike in futures trading. Meanwhile, Asia’s Hang Seng index surged over 3%, highlighting a global appetite for risk following the truce.

Not every asset class benefited, however. Gold, typically a safe haven during uncertainty, fell by 2.5% as investors rotated into equities and crypto.

While the tariff rollback is temporary, it offers a crucial window for both nations to iron out deeper issues. According to the joint statement, a formal mechanism for continued economic dialogue will be established during this 90-day interval.

Whether this truce leads to a more lasting resolution remains to be seen. But for now, traders and investors alike are cheering the détente—and Bitcoin is basking in the relief rally.