The 90-day US/China tariff deal may be the catalyst for an even broader rebound in stock markets and cryptocurrency, with investors looking ahead to potential tax relief packages.
White House announced on May 12 that the two countries will reduce their respective tariffs to 10% for an initial 90-day period beginning May 14 — a 24% cut from current levels.
Scott Bessent of the US Treasury Department said at a press conference held in Geneva that both countries are united to prevent further economic decoupling.
“The consensus from both delegations is neither side wants to be decoupled,” Bessent is saying. “What has occurred with these very high tariffs was an equivalent of an embargo, and neither side wants that. We do want trade. We want more balance in trade.”
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The positive tone of the talks, coupled with the suspension for 90 days of any additional tariffs, reduces the likelihood of a trade war. “sudden re-escalation,” Altcoins, traditional stock exchanges may follow Bitcoin.BTCAurelie Barré, Principal Research Analyst at the crypto intelligence platform Nansen, believes that price recovery is possible.
“Bitcoin is already trading close to its all-time highs,” Barthere tells Cointelegraph. “However, with the latest easing in trade tensions, it now appears that altcoins, US equities, and the US Dollar Index (DXY) are well-positioned for a catch-up rally.”
Bitcoin’s protection from tariff-related risk has led to its outperformance in recent months.
“I also expect the US dollar to perform strongly against prior safe-haven currencies such as the euro, Swiss franc and Japanese yen, reflecting improved global risk sentiment,” Barthere is added.
Nansen predicted earlier a 70% chance for crypto The price of stocks will recover depending on whether trade talks are successful or not.
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Tax cuts could boost rally
Bitcoin is only 4.8% of the way to recapturing it’s all-time record high, which was $109 800 in January 2025. Cointelegraph Markets Pro The data show.
“There is potential for risk assets to move beyond the January peak levels if we see a generous tax cut package materialize,” Barthere tells Cointelegraph that he also:
“This would need to go beyond merely extending the expiring tax cuts, and include additional income tax reductions as well as corporate tax cuts on top.”
Bessent had hinted that such a package might be revealed by the middle of July, and this would serve as an indication. “significant additional catalyst” Markets are a great place to start.
Analysts are calling for an increase in the number of analysts due to the constructive nature of trade negotiations combined with new technical patterns on charts. Bitcoin rally to $150,000According to the results of an emerging bull flag pattern On the Weekly Chart
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Source: cointelegraph.com
