will Bitcoin price soar past $100K as trade tensions ease?

By: bitcoin ethereum news|2025/05/05 17:15:01
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Trump acknowledged that the existing 145% US tariff on Chinese imports is ‘too high’. Currently, the US and China are locked in a steep tariff battle. Bitcoin and Ethereum have shown strong performance during periods of dovish monetary policy and reduced inflation. US President Donald Trump has signaled a willingness to lower tariffs on Chinese goods. The announcement comes amid escalating speculation about how such a policy shift could impact inflation, interest rates, and digital assets like Bitcoin and Ethereum. Trump’s comments have already sparked renewed interest among crypto investors, who see a potential rally in the making. Speaking in a recent CNBC interview, President Trump acknowledged that the existing 145% US tariff on Chinese imports is “too high” and has effectively crippled bilateral trade. “At some point, I’m going to lower them,” he said, adding that China is eager to resume business with the United States. Trump’s remarks suggest that trade talks between the two global powers could be back on the table, with hopes of a more balanced economic relationship. Currently, the US and China are locked in a steep tariff battle, with Beijing retaliating by imposing a 125% duty on American goods. These tit-for-tat tariffs have disrupted global supply chains and contributed to higher prices for consumer goods ranging from electronics to clothing. Industry analysts believe that easing these levies could reduce inflationary pressure, thereby influencing the Federal Reserve’s monetary policy, particularly in holding back further interest rate hikes. From a crypto market perspective, the implications are significant. Historically, digital assets such as Bitcoin and Ethereum have shown strong performance during periods of dovish monetary policy and reduced inflation. With tariff reduction on the horizon, crypto investors are betting on a resurgence in prices. Bitcoin, for instance, recently dipped below $80,000 but has since bounced back, trading above $94,000 at press time. Analysts predict that if sentiment continues to improve, Bitcoin could breach the $100,000 milestone, triggering a broader market rally. Beyond Bitcoin, altcoins like Ethereum (ETH), Ripple (XRP), and Solana (SOL) also stand to gain from a more favorable economic environment. Reduced trade tension often translates to increased risk appetite, driving more capital into speculative assets like cryptocurrencies. Trump’s comments also hint at a broader economic recalibration. Lower tariffs could ease operational costs for American businesses and improve consumer sentiment, factors that indirectly feed into the crypto economy by increasing liquidity and investor confidence. While a final decision is yet to be made, the mere prospect of US–China trade normalization has already set the tone for a volatile yet potentially bullish phase in the crypto markets. As always, traders are advised to keep a close eye on policy shifts that could influence macroeconomic indicators and, by extension, digital asset prices. Source: https://coinjournal.net/news/trump-hints-at-china-tariff-cut-will-bitcoin-price-soar-past-100k-as-trade-tensions-ease/

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