Tariff cuts and optimism over U.S.–China negotiations boost investor sentiment despite lingering macro uncertainty
Bitcoin rebounded to over $111,300 on Thursday after U.S. President Donald Trump signaled that a trade agreement with China could be reached “pretty soon.” The statement came following a bilateral meeting with Chinese President Xi Jinping in Busan, South Korea, reigniting hopes of easing global trade tensions.
The world’s largest cryptocurrency climbed from an intra-day low of around $108,500 to its new session high, even as broader markets remained volatile. Despite the rebound, Bitcoin remains down roughly 2% over the past 24 hours, reflecting investors’ mixed sentiment amid geopolitical and monetary policy shifts.
“Markets are reacting to optimism on the trade front, but there’s still a lot of uncertainty until China officially confirms the deal,” said Derek Lim, head of research at a Singapore-based trading firm. “Rare earth issues and tariff adjustments are politically sensitive, and both sides will need to verify any commitments.”
Tariffs Cut and Rare Earth Issues ‘Settled’
Trump told reporters aboard Air Force One that the U.S. will lower tariffs on Chinese imports from 20% to 10%, calling the meeting with Xi “a 12 out of 10.” He added that “all rare earth issues” have been settled and that there are no remaining roadblocks to reaching a broader trade accord.
“If confirmed, these tariff reductions could inject fresh liquidity into global markets,” said Vincent Liu, CIO of an Asia-based digital asset firm. “However, traders should remain cautious — macro positioning and liquidity flows, not headlines, will drive near-term Bitcoin moves.”
The Federal Reserve’s recent 25-basis-point rate cut and dissenting votes at its last meeting have added to the uncertainty. Chair Jerome Powell signaled that another cut in December is “not guaranteed,” tempering market enthusiasm.
Bitcoin’s resilience above $111,000 shows continued institutional interest, yet the broader crypto market remains highly sensitive to macro and policy signals.
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