US-China 90-day truce reduces tariffs, boosts cryptocurrencies
- Tariff reduction benefits cryptocurrency market
- Bitcoin surges on US-China trade truce
- Investors seek cryptos amid increased liquidity
After two days of intense negotiations, the United States and China reached an agreement that establishes a temporary suspension of bilateral tariffs for a period of 90 days. The tariffs imposed by Washington on Chinese products, which reached 145%, will be reduced to 30%, while Beijing will reduce its retaliatory tariffs from 125% to 10%. The measure, valid until Wednesday, represents a significant pause in the trade war that has severely affected global trade.
The truce between the world's two largest economies was welcomed by markets, with U.S. futures rising in pre-market trading. The easing of trade tensions also signals a partial resumption of supply chains and international trade, which are essential factors for global economic recovery. At the time of publication, the price of Bitcoin was quoted at $104.368, up 0,10% in the last 24 hours.
For the cryptocurrency market, the movement tends to have a positive impact. The reduction in geopolitical tension and the reduction in tariffs create an environment favorable to the appetite for higher-risk assets, which includes Bitcoin and other cryptos. The improvement in trade and lower inflationary pressure increase liquidity in the markets, a factor that historically drives the inflow of capital into digital assets.
With greater economic stability and less global uncertainty, institutional investors tend to increase their positions in cryptocurrencies, especially in a context of diversification. The expectation of a possible breakthrough in negotiations between the US and China beyond the 90 days reinforces the thesis of a continuous flow of capital to the crypto sector.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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