Bitcoin reaches a near-record value of $97,821.99 as Trump adviser hints at potential U.S.-China tariff reductions, triggering a crypto market surge that added billions to digital assets almost instantly.
At a Glance
- The cryptocurrency market cap surged from $3.11 trillion to $3.14 trillion within an hour following positive U.S.-China trade talk developments
- Bitcoin’s value climbed to $97,821.99, reaching its highest level since February 21
- Stephen Miran, President Trump’s Chief Economic Adviser, suggested tariff reductions could occur within weeks
- Current tariffs stand at 145% on Chinese imports to the U.S., while China imposes 125% tariffs on U.S. imports
- China’s Commerce Ministry has acknowledged U.S. willingness to negotiate and is evaluating the situation
Trade War Developments Trigger Crypto Market Rally
Cryptocurrency markets demonstrated their extreme sensitivity to international trade developments when Stephen Miran, President Trump’s Chief Economic Adviser, hinted at potential tariff reductions between the United States and China. The unexpected comments triggered an immediate surge in digital asset valuations, as investors responded to the prospect of improved global trade relations. Within a single hour, the total cryptocurrency market capitalization jumped by approximately $30 billion, climbing from $3.11 trillion to $3.14 trillion, highlighting the interconnectedness between geopolitical developments and digital currency markets.
Bitcoin, often considered the flagship cryptocurrency, experienced a remarkable surge, reaching $97,821.99—its highest valuation since February 21. This dramatic price movement underscores the volatile nature of cryptocurrency markets and their responsiveness to macroeconomic indicators. While Miran is not directly part of the trade negotiation team, his comments have been interpreted as revealing the administration’s strategic direction, suggesting that building upon the 2019 “phase one” agreement might be the foundation for future U.S.-China trade relations.
— 4Alpha Group (@4AlphaGroup) April 14, 2025
Current Tariff Landscape and Negotiation Status
The existing tariff structure has created significant trade barriers, with the United States currently imposing 145% tariffs on Chinese imports, while China maintains 125% tariffs on U.S. goods. This high-tariff environment has strained economic relations between the world’s two largest economies and contributed to market uncertainty. Miran’s recent statements indicate that the administration would be surprised if these tariff rates remain unchanged in the coming weeks, signaling a potential shift in trade policy that could have far-reaching implications for global markets.
“The President has been very clear that he thinks that there will be a deal with China… And I think the President is right,” said President Donald Trump’s Chief Economic Adviser, Stephen Miran.
China has responded cautiously but positively to these developments. A spokesperson from China’s Commerce Ministry acknowledged the U.S. administration’s willingness to engage in tariff negotiations, stating that China is carefully evaluating the situation. This diplomatic response suggests that both nations may be preparing for meaningful dialogue. The Trump administration had previously increased tariffs on all countries on April 2 but paused these increases for 90 days for all nations except China on April 9, indicating that China has remained a particular focus of U.S. trade policy.
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Trade War’s Broader Impact on Cryptocurrency Markets
The U.S.-China trade tensions have created significant volatility in cryptocurrency markets over the past year. Prior to the recent positive developments, the implementation of a 104% tariff on Chinese goods had triggered a sharp sell-off in the crypto market, with Bitcoin and Ethereum experiencing notable declines. During that period, the global cryptocurrency market capitalization dropped by over $250 billion, reflecting a broader retreat from high-risk assets as investors sought safer havens amid economic uncertainty.
“China has noticed that the senior leadership of the United States has repeatedly stated that it is willing to negotiate with China on tariff issues… In this regard, China is evaluating it,” added Miran.
The recent market reaction demonstrates that cryptocurrency valuations remain highly correlated with traditional financial markets during periods of global economic instability, challenging the notion that digital assets can fully decouple from conventional market forces. The Fear & Greed Index, a key metric for measuring market sentiment, has shown significant fluctuations in response to trade developments, shifting between fear and greed as news breaks. These patterns reveal that despite cryptocurrency’s decentralized nature, it remains inextricably linked to broader macroeconomic conditions.
Strategic Opportunities Amid Trade Tensions
Despite the challenges posed by trade tensions, certain strategic opportunities have emerged within the cryptocurrency sector. Stablecoin adoption has increased as businesses seek reliable tools for cross-border transactions amid fiat currency fluctuations. Additionally, both the United States and China have intensified investments in blockchain technology for strategic purposes, recognizing digital assets’ growing role in national security frameworks. These developments suggest that while market volatility may persist in the short term, the underlying infrastructure supporting cryptocurrency continues to strengthen.
The potential reduction in tariffs between the U.S. and China could create a more favorable environment for cryptocurrency innovation and adoption. Reduced trade barriers might ease supply chain disruptions that have affected hardware manufacturers, including those producing mining equipment. Furthermore, improved trade relations could diminish regulatory uncertainty that has constrained market growth. As negotiations progress, market participants will closely monitor diplomatic developments for indications of how the evolving trade relationship might reshape the global financial landscape with cryptocurrency at its center.
