- Bitcoin and Ethereum prices rose as the US and China signaled a possible tariff deal, boosting investor optimism.
- Analysts warn the proposed deal is only a framework, urging traders to wait for confirmation from President Trump.
- Crypto markets showed modest gains, with trading volume spiking and altcoins like XRP and Solana also climbing.
Fresh hopes have surged through global financial markets following signs of a possible breakthrough in U.S.–China trade negotiations. Both nations suggested a tariff deal, with details expected soon, may be underway. The news has already triggered movement in stocks and crypto, particularly Bitcoin and Ethereum.
Market watchers remain cautious, however, awaiting official confirmation from President Trump. Despite the uncertainty, investor sentiment has improved, with speculation growing around the impact on digital assets.
Tariff Deal Sparks Bullish Sentiment in Crypto Markets
According to blockchain analytics firm Santiment, the United States and China both hinted at a mutual agreement following meetings in Geneva. While specific terms remain undisclosed, Treasury Secretary Scott Bessent noted that the proposed deal addresses the $1.2 trillion U.S. trade deficit through new tariff frameworks. Traders are watching for final confirmation from the White House, expected Monday morning.
Bitcoin climbed slightly following the news, trading at $104,302 at publication. Ethereum rose above $2,550, gaining 1.78% in 24 hours. Santiment reported a surge in discussion volume, now at its highest since the crypto market bottomed in April 2025. The broader market responded similarly, with major altcoins such as XRP, BNB, and Solana recording consistent weekly gains.
Despite initial enthusiasm, Santiment warned that the announcement may only reflect a framework, not a finalized agreement. The firm advised traders to wait for President Trump’s official statement before making major moves. They also urged caution against “buy the rumor, sell the news” behavior.
Daan Crypto Trades, a well-followed market analyst on X, noted unusual trading activity ahead of the announcement. He observed that Bitcoin’s price action began moving sharply one hour before the Geneva news, suggesting possible insider trading. He added that in recent months, markets have often seen price movement in advance of geopolitical headlines, calling attention to potential information leaks.
Historical Tensions Had Suppressed Bitcoin’s Growth
Past trade disputes between the U.S. and China have had a measurable effect on the crypto market. A 2024 Forbes report highlighted the inflationary effects of tariffs on tech imports, particularly semiconductors. These increases raised operational costs for Bitcoin mining operations, applying long-term price pressure.
With the new tariff deal potentially reversing those effects, analysts believe the crypto market may be entering a more stable period. A reduction in trade barriers could also restore investor confidence and improve global liquidity, which benefits speculative assets like cryptocurrencies.
Stocks Rally, but Crypto Movement Remains Moderate
While stock markets saw a robust rally in response to the news, digital assets have so far reacted modestly. Daan Crypto Trades noted that Bitcoin and Ethereum moved during the weekend but not with explosive momentum. He attributed the limited action to traders waiting on verified news before committing to larger positions.
Trump’s earlier remark encouraging investors to buy stocks before the weekend added to speculation that a deal announcement was imminent. With a tentative 90-day timeline as noted by Daan, markets may see further volatility as new details emerge. Additional headlines are expected in the coming weeks as negotiations progress.
The developing trade dialogue between the U.S. and China is reshaping market sentiment across sectors. Although the tariff agreement is not yet finalized, the hint of progress has already lifted Bitcoin and Ethereum prices. Analysts remain alert, recommending restraint until official confirmation is released.
The crypto market, while optimistic, may still face sharp reactions depending on the final terms. For now, investors are watching closely as this global economic narrative continues to unfold.
