After months of trade strain, a breakthrough in US-China relations has sent the crypto market soaring. Both nations agreed to a 90-day suspension of mutual tariffs, a move that immediately relieved global financial markets. Bitcoin responded sharply, climbing past the $105,000 level for the first time. Investors are watching crypto prices closely as regulatory clarity and economic cooperation grow.

Bitcoin Price Surges Amid US-China Tariff Truce

Bitcoin’s price rose past $105,000 following news of a temporary US-China trade agreement. According to CoinMarketCap, BTC hit a high of $105,338 before slightly pulling back.

This spike comes after the two nations agreed to pause tariffs on each other’s goods for 90 days. The United States lowered tariffs on Chinese imports from 145% to 30%, while China reduced duties on American goods from 125% to 10%.

US Treasury Secretary Scott Bessent stated during a conference in Geneva that neither side seeks economic decoupling. “What occurred with these very high tariffs was the equivalent of an embargo,” he said. “Neither side wants that.”

US-China Agreement Opens Door for Renewed Trade

The deal signals a renewed commitment to stable trade between the world’s largest economies. Leader representative form each side accepted the importance of a long-term partnership and pledged to re-engage dialogue.

The temporary suspension in trade enables American firms to recover operation of disrupted supply chains as a result of high tariffs. Powers associated with the issues connected to the price concerns resulted in some producers terminating their imports, yet the new deal provides the possibility of recovering trade.

Official joint documents made available public that both countries will have arrangements setup to facilitate trade conversations. This approach is to make relations calm and provide a brighter scheme for trade action.

Crypto Market Reacts as Bitcoin Breaks Record

The US-China tariff pause has had a clear effect on the crypto market. Bitcoin surged to a record high of $105,338 before settling slightly lower at $104,338. Trading volume and volatility both increased during the announcement window.

Other top crypto assets also posted gains. Ethereum rose by 41% over the week, while XRP gained 12%, according to CoinMarketCap data. The global crypto market cap reached $3.37 trillion, reflecting a 1.82% increase in 24 hours.

Investors now view the easing of trade tensions as a bullish macro signal. The agreement may lead to higher institutional confidence in digital assets during global economic shifts.

Outlook: Institutional Demand and Market Liquidity Grow

With the geopolitical risk lowered, institutional interest in Bitcoin and other crypto assets may rise. The market is reacting to increased certainty, which often fuels long-term investments.

Analysts suggest the 90-day trade pause could act as a foundation for broader policy agreements. If the current discussions continue to bear positive fruit, there is every likelihood of market liquidity increasing, thus brightening up the future for all kinds of financial assets.

Bitcoin ETFs have acted as a price enabler with a continual influx throughout the week. Once trade restrictions relax, the market interest should shift to developing markets for global cryptocurrency adoption.