Trump Cuts Tariffs as U.S. and China Reach Trade Deal — Bitcoin Surges in Response

After weeks of tension, a major turnaround has arrived. U.S. President Donald Trump announced after meeting with Chinese President Xi that the U.S. will reduce tariffs on Chinese imports and has signed a one-year trade agreement focused on rare earths and critical minerals.

The news immediately eased global market jitters and triggered a sharp rebound in Bitcoin, which climbed back above $110,000.

A Historic U.S.–China Meeting Trump described his meeting with President Xi as “amazing,” calling the deal “a new beginning for global cooperation.”

According to the White House, both countries agreed to renew the trade deal annually, with the next round of talks planned for 2026 — Trump will visit Beijing, and Xi will travel to Washington. The talks in South Korea lasted nearly two hours, resulting in several key outcomes: A reduction in U.S. tariffs on Chinese goods from 57% to 47%A cut in fentanyl tariffs from 25% to 10%Easing export restrictions on advanced chips involving Nvidia Trump emphasized that the goal of the deal is not only to stabilize trade but also to ease geopolitical tensions surrounding the Ukraine conflict.

Meanwhile, Russian envoy Kirill Dmitriev said at an investment forum in Saudi Arabia that he expects the war in Ukraine to end within a year.

Bitcoin’s Sharp V-Shaped Recovery The cryptocurrency market reacted instantly. Bitcoin rebounded from lows near $107,000 to above $110,000, forming a clear V-shaped recovery pattern.

Major altcoins such as Ethereum, XRP, BNB, Solana, Dogecoin, and Cardano each gained over 1% within an hour as concerns over Trump’s tariffs faded. Currently, BTC trades around $110,250, with a daily high of $113,642.

Trading volume remains relatively stable, showing only about a 2% increase. Market sentiment is still influenced by: BTC transfers linked to Elon Musk’s SpaceXHawkish comments from Federal Reserve Chair Jerome Powell, keeping some traders cautious

ETF Outflows from Bitcoin and Ethereum According to SoSoValue, U.S. spot Bitcoin ETFs recorded a net outflow of $471 million.

None of the 12 Bitcoin funds reported inflows — BlackRock’s IBIT saw outflows of $88.1 million, while Fidelity’s BTC fund recorded the largest withdrawal at $164.4 million.

Spot Ethereum ETFs also faced $81.44 million in net outflows, with BlackRock’s ETHA being the only fund to show a net inflow.

Analysts Expect Bitcoin to Reach $120,000 Despite short-term ETF outflows, analysts remain broadly optimistic.

Crypto strategist Ali Martinez noted that Bitcoin historically cycles between high-risk and low-risk phases based on the Sharpe Ratio.

“After reaching a high-risk zone, Bitcoin now appears poised to transition into a low-risk phase,” he explained. The renewed cooperation between the U.S. and China could further boost global crypto sentiment, with analysts expecting Bitcoin to hit $120,000 by November as tariff fears fade and liquidity returns to the market.

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