The price of Bitcoin (BTC)
$0.000037 experienced a decline due to escalating tensions between China and the United States. However, this concern has now been alleviated, as a recent announcement from Trump has brought positive news. For the past two days, negotiations have been taking place between delegations, and yesterday evening, Lutnick stated that the meetings were going well. Subsequent reports indicated that the terms of the agreement had been clarified. Now, the ball is in China’s court, and cryptocurrencies are on the rise.
Cryptocurrency Market Surges
For the past six months, the risk markets have been under pressure due to the potential escalation of tariffs into a global trade war and the threat of recession. However, the point has been reached where an agreement with China has been achieved, and Trump has hinted at potential resolutions with other partners. Trump shared one of the two major announcements of the day.
“Our agreement with China is complete, pending Xi and my final approval. All necessary rare earth elements are to be supplied upfront by China. We receive a total tariff of 55%, while China receives 10%. Relations are excellent! Thank you for your interest in this matter!” – Trump, Truth Social
Looking Ahead
In the long term, the elimination of tariffs will only be possible if production is relocated to the United States. Although current tariffs, adjusted to reasonable rates, may have a negative impact on inflation, they are seen as positive for curbing the risk of recession.
