US-China Trade Progress Sends Crypto Soaring—But Is It “Buy the Rumor, Sell the News”?

• Crypto prices jumped after U.S.-China talks hinted at tariff relief, pushing Ethereum above $2,500.
• Investor sentiment flipped sharply as Geneva deal talks sparked hopes of revived global capital flow.

The crypto market experienced a sudden recovery during the weekend following a possible trade deal breakthrough between the US and China. Top officials from both countries confirmed on Sunday that a deal had been reached following two days of talks in Geneva, and details would come on Monday. Although the deal’s full text has been kept secret, the broader crypto market responded positively.

Bitcoin rose to $104,100, making modest gains, but Ethereum had the greatest impact by surging back above $2,500.

The rally comes on the heels of a period of stagnant weeks caused by uncertainty surrounding global trade policy. Trader optimism was renewed with expectations that the elimination or reduction of tariffs might spark global financial markets, along with crypto.

🇨🇳🇺🇸 BREAKING: US & China are mutually stating that an agreement has been reached, with more details to come later Monday. Bitcoin ($104.1K) has mildly climbed, and altcoins are surging with Ethereum now all the way back above $2,500.

Stock markets are reacting positively, with… https://t.co/SEmz0gwR2e pic.twitter.com/nNLYgH7bEJ

— Santiment (@santimentfeed) May 12, 2025

U.S. Treasury Secretary Scott Bessent declared in Geneva that “substantial progress” had been made in attempts to conclude President Trump’s trade war.

“We will be giving details tomorrow, but I can tell you that the talks were productive,” Bessent said on Sunday.

He also appreciated the hosting of the negotiations by Switzerland and referred to the location as an aid to the productivity of the meeting.

Will Market Rally Hold or Fade?

Sentiment shifted rapidly as it became increasingly believed that tariffs would no longer hold back capital flows and business sentiment. Many are now wondering if the spike will result in sustained expansion—or a “buy the rumor, sell the news” masterful execution.

U.S. Trade Representative Jamieson Greer was as optimistic as Bessent on the tone of progress and referred to the two days of talks as “very constructive.” In confirmation of an agreement having been reached, he added:

We’re confident that the deal we struck with our Chinese partners will help us to work toward resolving that national emergency.

China’s Xinhua News Agency welcomed the engagement but noted that dialogue had to be based on equal respect for each other in terms of upholding and promoting their common interest and shared values. In the meantime, the editorial cautioned that the US had to be pragmatic if the deal was to produce real benefits.

Tariffs Sparked 145% Duties—Now Trade Reset Begins

The origin of the reset is from the early part of the year when President Trump imposed 10% tariffs on Chinese imports out of concern about fentanyl. This quickly escalated to general trade penalties as American tariffs surged to 145% and Beijing countered with 125% on the exports of the US. These tit-for-tat responses got the global economy worried as it upset supply chains.

“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,” said Trump.

He also expressed his expectation that the agreement would open up greater American entry into Chinese markets. 

China, though eager to talk, is still resisting the American restrictions on American technology. In an editorial, Zhao Yang referenced China’s competitiveness in chip production and in AI and added how firms like Huawei and DeepSeek are closing the gap with American firms while using less.

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