Bitcoin and Ethereum Gain Momentum as Tariff Cuts Ease Global Tensions
Global Markets Surge as US-China Trade Agreement Reignites Risk Appetite
A surprise breakthrough in U.S.-China trade negotiations has triggered a renewed appetite for risk across global markets — with the cryptocurrency sector reaping significant benefits. Following a landmark agreement to significantly reduce tariffs, investor sentiment sharply shifted, fueling rallies in both traditional and digital assets.
The deal sees U.S. tariffs on Chinese goods drop from 145% to 30%, while China reduces duties on American imports from 125% to 10%. This major easing in trade tensions has catalyzed a bullish wave, especially in high-volatility sectors like crypto.
Crypto Markets React: Bitcoin and Ethereum Stabilize, Sentiment Turns Bullish
According to market intelligence firm QCP, the initial reaction saw U.S. equities open 3% higher, gold decline by nearly 3%, and the VIX volatility index fall to 18 — all classic signs of a market turning risk-on. In tandem, crypto volatility also declined, with Bitcoin's front-end implied volatility contracting by over five points.
Bitcoin (BTC) briefly dipped but quickly rebounded, stabilizing near the $103,000 mark. Ethereum (ETH) followed a similar path, holding steady around $2,400. Despite the gains, Bitcoin's dominance has fallen below 63%, hinting at possible asset rotation within the digital currency space.
Bitcoin Faces Mixed Signals While Ethereum Gains Strength
While Bitcoin remains caught between narratives — its identity as "digital gold" versus a speculative risk asset — its short-term outlook remains range-bound. Muted derivatives hedging and mixed macroeconomic signals are keeping BTC’s price action indecisive.
Ethereum, however, is showing stronger momentum. The combination of neutral funding rates, limited leveraged positioning, and renewed demand for long-term options has positioned ETH for further upside. The recent successful rollout of Ethereum's Pectra upgrade has also bolstered confidence in the asset.
QCP’s latest analysis suggests Ethereum could be the next major allocation target, especially as improving market structure and easing geopolitical tension create a favorable environment for long-term plays.
