{"id":129046,"date":"2025-05-12T04:15:26","date_gmt":"2025-05-12T04:15:26","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=129046"},"modified":"2025-05-12T04:15:26","modified_gmt":"2025-05-12T04:15:26","slug":"trumps-us-china-trade-deal-could-shed-light-on-bitcoins-use-case","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=129046","title":{"rendered":"Trump\u2019s US-China trade deal could shed light on Bitcoin\u2019s use case"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsBitcoin\u2019s potential price reaction to a trade deal between the United States and China could give insights into whether Bitcoin is being used as a safe-haven asset in the current market.<br \/>\nBitcoin (BTC) outperformed stocks and held up \u201cincredibly strong\u201d during a sharp sell-off on stock markets in April, following Donald Trump\u2019s announcement of tariffs on \u201cLiberation Day,\u201d observed crypto trader \u201cDaan Crypto\u201d on May 11.<br \/>\nFollowing its plunge to $75,000 on April 7, Bitcoin recovered strongly to trade 27% higher at around $95,000 by the end of the month. Meanwhile, indexes like the S&amp;P 500 and Nasdaq declined in April.\u00a0<br \/>\nAt the time, people wondered if Bitcoin\u2019s relative strength came from the narrative that countries were using Bitcoin to bypass tariffs. The analyst said the opposite should theoretically occur if the trade deal is confirmed.<br \/>\n\u201cTheoretically speaking, if the trade uncertainty was what was making BTC outperform, it should stop outperforming after we hit the most important deal, which includes China.\u201d<br \/>\nBitcoin performance since Trump\u2019s \u201cLiberation Day\u201d tariff announcement. Source: Daan Crypto<br \/>\nOn May 11, the White House announced that talks between the US and China regarding a trade deal have made \u201csubstantial progress.\u201d However, no official agreement had been announced.<br \/>\nRelated: Bitcoin must close the week above this level to start &#8216;price discovery 2&#8217;<br \/>\n\u201cWe will be giving details tomorrow, but I can tell you that the talks were productive,\u201d said US Treasury Secretary Scott Bessent.<br \/>\nHowever, if Bitcoin keeps doing its thing and outperforming, \u201cit\u2019s safe to assume that tariffs likely have little direct impact on how BTC is treated or used,\u201d Daan concluded.\u00a0<br \/>\nMarkets await trade deal announcement\u00a0<br \/>\nSome analysts, however, believe that Bitcoin will likely jump if a trade deal comes through, along with potential rate cuts.<br \/>\n\u201cWe believe that institutional investors are less apprehensive about investing in Bitcoin and crypto as US-China trade talks come to a conclusion and the likelihood of rate cuts increases,\u201d Jeff Mei, chief operations officer at BTSE, told Cointelegraph.\u00a0<br \/>\nMeanwhile, Jupiter Zheng, researcher at HashKey Capital, said, \u201cA US-China trade deal could signal stability in global markets, potentially driving investors to seek growth opportunities and send capital into alternative assets.\u201d<br \/>\n\u201cBitcoin could also see new highs as a result, particularly if the deal weakens the dollar or leads to renewed liquidity flows into emerging markets.\u201d<br \/>\nAnalyst Will Clemente said on X that only a solid announcement of a trade deal is likely to keep momentum rolling.\u00a0<br \/>\n\u201cFeels like you\u2019re gonna need a real, tangible announcement on the China front to keep things moving here locally, momentum starting to stall out on BTC for the first time in a bit,\u201d he said. \u00a0<br \/>\nMagazine: Bitcoin eyes \u2018crazy numbers,\u2019 JD Vance set for Bitcoin talk: Hodler\u2019s Digest<a href=\"https:\/\/cointelegraph.com\/news\/us-trump-trade-deal-china-shed-light-bitcoin-safe-haven?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsBitcoin\u2019s potential price reaction to a trade deal between the United States and China could give insights into whether Bitcoin is being used as a safe-haven asset in&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129046"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129046"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129046\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129046"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}