Bitcoin surges past $104K as markets react to US-China trade breakthrough 

The rally extended to major altcoins, with Ethereum climbing over 10% to $2,600 and Dogecoin surging 21% to nearly $0.25, reinforcing the crypto market’s strong correlation with global economic developments.

The breakthrough emerged from high-stakes negotiations at Villa Saladin in Geneva, where Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng engaged in 10 hours of trade discussions. Talks will continue into Sunday, signaling potential relief from escalating tariff tensions.

Following the discussions, Trump posted on Truth Social, stating that many things were discussed and much has been agreed to.

“A very good meeting today with China, in Switzerland. Many things discussed, much agreed to. A total reset negotiated in a friendly but constructive manner. We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!” 

The statement marked the most optimistic signal yet in months of escalating trade tensions, prompting a swift response across financial markets, particularly in the cryptocurrency sector, which thrives in uncertain macroeconomic environments.

The U.S.-China trade war intensified when Trump raised tariffs on Chinese imports to 145% last month, prompting China’s retaliation with a 125% levy on American goods.

These steep tariffs have significantly disrupted trade flows, impacting $660 billion worth of transactions between the world’s two largest economies.

Trump’s tariff strategy also includes a 20% charge targeting China’s fentanyl exports to the U.S., while the remaining 125% levy stems from long-standing trade disputes over Chinese market access restrictions and industrial policies.

Financial markets have been on edge due to uncertainty over whether tariff reductions could be on the table, fueling speculation over potential economic easing between the two superpowers.

The cryptocurrency market, known for its sensitivity to global trade policies, reacted swiftly, with Bitcoin and Ethereum seeing major inflows as investors hedge against financial instability.

As the crypto market continues to reflect broader economic trends, Bitcoin’s historic milestone above $104,900 underlined its role as a key indicator of financial sentiment, particularly amid geopolitical uncertainty and shifting trade policies.

With the Geneva trade talks extending into Sunday, investors will be closely monitoring further announcements, which could shape market movements heading into the next trading week.