BITCOIN, ALTCOINS POISED TO RALLY ON US-CHINA TARIFF AGREEMENT

Last updated: June 19, 2025, 18:30 | Written by: Arthur Hayes

The cryptocurrency market is abuzz with optimism as a 90-day tariff agreement between the United States and China takes center stage.This temporary truce in the long-standing trade war has sparked renewed hope for a broader recovery, not just in the digital asset space but also in traditional stock markets.Investors are eagerly anticipating the potential for tax relief measures to further fuel this upward trajectory.The recent announcement from the White House, confirming reciprocal tariff reductions to 10% beginning May 14th, has already triggered a noticeable surge in Bitcoin's price, reaching levels unseen since late January.This development could mark a significant turning point, but is this just a temporary boost, or the start of something bigger? A 90-day tariff agreement between the US and China may set the stage for a broader recovery of stock and cryptocurrency markets, as investors look ahead to a potential tax relief package. The White House announced on May 12 that the two countries will reduce their respective tariffs to 10% for an inUnderstanding the nuances of this agreement and its potential impact is crucial for navigating the volatile world of cryptocurrencies.What does this mean for your investment strategy, and which altcoins stand to benefit the most?

The US-China Tariff Agreement: A Catalyst for Crypto?

The recent U.S.-China tariff agreement is being hailed by many as a potential game-changer for the cryptocurrency market.After months of strained negotiations, a compromise has been reached that involves reducing tariffs on imported goods from both countries to 10% for a 90-day period.This agreement, which went into effect on May 14th, represents a significant de-escalation of the trade war and has injected a much-needed dose of optimism into global markets.

How the Agreement Impacts Risk Sentiment

The primary impact of this agreement is on risk sentiment. Bitcoin, Altcoins Poised to Rally on US-China Tariff Agreement. A temporary truce in the trade war between the US and China, marked by a 90-day tariff agreement, has ignited optimism in the cryptocurrency and stock markets. Investors are keenly observing the potential for a broader market recovery, buoyed by the prospect of tax relief measures.For months, the trade war has created uncertainty and volatility, causing investors to shy away from riskier assets like cryptocurrencies and tech stocks.The tariff reduction signals a willingness to cooperate, suggesting both nations aim to avoid economic decoupling. The move has triggered a price rise in Bitcoin, propelling it to highs last seen on January 31. US-China Tariff Deal Sparks Bitcoin Rally. The White House released a joint statement confirming the agreement. Under it, the US will lower its tariffs on Chinese imports from 145% to 30%.This creates a more stable and predictable environment, encouraging investors to re-enter the market and take on more risk.

Analysts believe that improving risk sentiment could trigger a rally not only in Bitcoin and altcoins, but also in equities and potentially weaken the DXY (U.S. A 90-day tariff agreement between the US and China may set the stage for a broader recovery of stock and cryptocurrency markets, as investors look ahead to a potential tax relief package.The WhiteDollar Index).A weaker dollar often correlates with stronger performance in assets like Bitcoin, as it makes it more attractive to international investors.

Bitcoin's Immediate Reaction

Bitcoin responded swiftly to the news of the agreement, experiencing a notable price surge. cointelegraph.com: A 90-day tariff agreement between the US and China may set the stage for a broader recovery of stock and cryptocurrency markets, as investors look ahead to a potential tax relief package.The 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 levelsReports indicated Bitcoin had jumped 12% on the news, reaching $104,000. US-China tariff agreement may spur Bitcoin and altcoins rally, reducing risks of sudden market re-escalation. (RUS)While figures may vary across exchanges, the overall positive sentiment is undeniable. Profit taking near Bitcoin s all-time high and uncertainty over the May 13 US CPI print could pin BTC price below its all-time high. altcoins poised to rally on US-China tariff agreement.This price movement is a direct reflection of investors' renewed confidence in the cryptocurrency market and its potential for growth.

Altcoins Riding the Bitcoin Wave

Historically, altcoins have tended to follow Bitcoin's lead, both in bull and bear markets. US-China tariff agreement may spur Bitcoin and altcoins rally, reducing risks of sudden market re-escalation. (SPA)As Bitcoin rallies, it often pulls altcoins along with it, creating opportunities for significant gains. A 90-day tariff agreement between the US and China may set the stage for a broader recovery of stock and cryptocurrency markets, as investors look ahead to a potential tax relief package.The White House announced on May 12 that the two countries will reduce their respective tariffs to 10% for an inThis is because Bitcoin is seen as the bellwether of the crypto market, and its performance often sets the tone for the rest of the asset class.

Ethereum and XRP Rebound

Reports suggest that Ethereum (ETH) and XRP, two of the largest altcoins by market capitalization, have rebounded sharply from recent lows. U.S. and China agree to reduce tariffs to 10% for 90 days, starting May 14. Bitcoin (BTC) trades near $103,918, just 4.8% below its all-time high. Analysts say altcoins, equities, and DXY may rally as risk sentiment improves. A potential tax relief package could act as a second catalyst by mid-July.This rebound coincides with the broader market optimism surrounding the US-China tariff agreement, indicating that these altcoins are benefiting from the improved sentiment. Related: Bitcoin, altcoins poised to rally on US-China tariff agreement. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.While their specific performance may vary, their positive movement reflects the overall positive trend in the altcoin market.

Identifying Potential Altcoin Winners

While the entire altcoin market may benefit from the agreement, some altcoins are poised to outperform others.Identifying these potential winners requires careful analysis and understanding of market dynamics.Here are some factors to consider:

Strong Fundamentals: Altcoins with solid technology, a strong development team, and a clear use case are more likely to sustain their gains in the long run.
High Trading Volume: Altcoins with high trading volume tend to be more liquid and less susceptible to manipulation.
Positive News and Developments: Altcoins that are receiving positive news and announcements, such as partnerships or upgrades, may experience greater price appreciation.

The Role of Potential Tax Relief

Beyond the US-China tariff agreement, another factor contributing to the bullish sentiment in the crypto market is the prospect of a potential tax relief package.Such a package, if implemented, could inject even more liquidity into the market and further stimulate investment activity. A 90-day tariff agreement between the US and China may set the stage for a broader recovery of stock and cryptocurrency markets, as investors look ahead to a potential tax relief package.This double dose of positive news is creating a powerful tailwind for Bitcoin and altcoins.

How Tax Relief Could Boost Crypto

Tax relief can boost the crypto market in several ways:

Increased Disposable Income: Tax cuts increase individuals' disposable income, giving them more funds to invest in assets like cryptocurrencies.
Corporate Investment: Tax breaks for corporations can free up capital for investment in innovative technologies, including blockchain and crypto-related projects.
Reduced Capital Gains Taxes: Lower capital gains taxes can incentivize investors to hold onto their crypto assets for longer periods, reducing selling pressure and supporting price appreciation.

Timing and Uncertainty

While the prospect of tax relief is encouraging, it's important to remember that it is not a certainty.The timing and specifics of any potential tax package are still uncertain, and its impact on the crypto market will depend on the details of the legislation. A 90-day tariff agreement between the US and China may set the stage for a broader recovery of stock and cryptocurrency markets, as investors look ahead to a potential tax relief package. The White House announced on May 12 that the two countries will reduce their respective tariffs to 10% for an initial 90-day period [ ]Investors should factor this uncertainty into their investment decisions and avoid over-relying on the possibility of tax relief.

Skepticism and Potential Roadblocks

Despite the prevailing optimism, it's essential to acknowledge that some skepticism surrounds the potential rally.Some analysts argue that the tariff agreement's impact might be temporary, providing a short-term boost rather than a long-term trend.

Profit Taking Near All-Time Highs

One potential roadblock is the possibility of profit-taking near Bitcoin's all-time high.As Bitcoin approaches its previous peak, some investors may choose to sell their holdings to lock in profits, creating downward pressure on the price.This could lead to a temporary pullback, even if the overall market trend remains positive.

Inflation Data and Market Sentiment

Economic data releases, such as the U.S. BTCUSD Bitcoin Bitcoin, altcoins poised to rally on US-China tariff agreement. A 90-day tariff agreement between the US and China may set the stage for a broader recovery of stock andCPI (Consumer Price Index) print, can also influence market sentiment. Bitcoin and altcoins rally following progress in US-China trade negotiations. Ethereum and XRP rebound sharply from April lows amid renewed market optimism. Conor McGregor calls for an Irish Bitcoin reserve, fueling further bullish sentiment.Higher-than-expected inflation could lead to concerns about interest rate hikes, which could negatively impact the crypto market. Bitcoin and Altcoins Poised to Rally on U.S. China Tariff Deal and Tax Relief Hopes. In a groundbreaking development for the global economy, the recent U.S. China tariff agreement is setting the stage for a potential rally in Bitcoin, altcoins, and equities.Traders watched the May 13 CPI numbers carefully for such signals.

McGregor's Call for an Irish Bitcoin Reserve

Adding to the already charged atmosphere, a seemingly unrelated event further fueled bullish sentiment.Conor McGregor, the renowned Irish MMA fighter and entrepreneur, called for the creation of an Irish Bitcoin reserve. A 90-day tariff agreement between the US and China may set the stage for a broader recovery of stock and cryptocurrency markets, as investors look ahead to a potential tax relief package. TheWhile this may seem like a publicity stunt, McGregor's influence and reach cannot be ignored.

The Power of Celebrity Endorsements

Celebrity endorsements can have a significant impact on the crypto market, particularly on retail investors.McGregor's call for a Bitcoin reserve brought increased attention to Bitcoin and cryptocurrencies in general, potentially attracting new investors to the market.

Symbolic Significance

Beyond the immediate price impact, McGregor's statement carries symbolic significance. A recent 90-day tariff agreement between the US and China, set to begin on May 14, could stimulate a recovery in stock and cryptocurrency markets. This agreement will reduce tariffs to 10%, a significant cut from current levels, and suggests both nations aim to avoid economic decoupling. Analysts see thisIt reflects a growing recognition of Bitcoin as a legitimate asset class and a potential alternative to traditional financial systems.His endorsement reinforces the narrative that Bitcoin is not just a speculative investment but a store of value and a potential hedge against inflation.

Practical Strategies for Navigating the Rally

So, what should investors do in light of these developments?Here are some practical strategies for navigating the potential rally:

Do Your Research: Before investing in any cryptocurrency, do your own research and understand the risks involved. A new tariff agreement could remove a major hurdle for risk assets, potentially setting the stage for a substantial market rally across both traditional finance and the digital asset space. Investors are closely watching how this development, combined with potential tax relief, might propel Bitcoin and altcoins. US-China Tariff Agreement DetailsDon't rely solely on news headlines or social media hype.
Diversify Your Portfolio: Don't put all your eggs in one basket. Cryptocurrency markets surged Monday as the United States and China announced reciprocal tariff reductions, with Bitcoin climbing 12% to $104,000. The breakthrough agreement follows months of tense negotiations between Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng in Geneva.Diversify your portfolio by investing in a variety of cryptocurrencies with different use cases and market capitalizations.
Manage Your Risk: Set stop-loss orders to limit your potential losses and avoid investing more than you can afford to lose.
Stay Informed: Keep up-to-date with the latest news and developments in the crypto market.Monitor price movements, regulatory changes, and technological advancements.
Consider Dollar-Cost Averaging (DCA): DCA involves investing a fixed amount of money at regular intervals, regardless of the price. The U.S. China tariff agreement is seen as a catalyst for a potential rally in Bitcoin and altcoins, but some argue this could be a temporary boost rather than a long-term trend. Optimism around a possible tax relief package adds fuel to the rally, yet skeptics warn of over-reliance on such fiscal measures.This can help to smooth out the volatility and reduce the risk of buying at the top.

Questions to Ask Yourself Before Investing

Before jumping into any investment, consider these key questions:

What is my risk tolerance?
What are my investment goals?
How long am I willing to hold this investment?
Do I understand the underlying technology?

Potential Risks and Downsides

While the potential for a rally is exciting, it's crucial to be aware of the inherent risks associated with cryptocurrency investments.The market is notoriously volatile, and prices can fluctuate wildly in short periods.

Regulatory Uncertainty

Regulatory uncertainty remains a significant risk factor for the crypto market. A 90-day tariff agreement between the US and China may set the stage for a broader recovery of stock and cryptocurrency markets, as investors look ahead to a potential tax relief package. The 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%Governments around the world are still grappling with how to regulate cryptocurrencies, and new regulations could potentially impact the market negatively.

Security Risks

Security risks, such as hacking and theft, are also a concern.Cryptocurrency exchanges and wallets are vulnerable to cyberattacks, and investors can lose their funds if their accounts are compromised.

Market Manipulation

Market manipulation is another potential risk.The crypto market is relatively unregulated, making it easier for individuals or groups to manipulate prices through coordinated buying or selling activity.

Conclusion: A Cautious Optimism

The US-China tariff agreement has undoubtedly injected a dose of optimism into the cryptocurrency market, setting the stage for a potential rally in Bitcoin and altcoins.The prospect of tax relief further amplifies this bullish sentiment.However, it's crucial to approach this situation with cautious optimism.The market remains volatile, and potential roadblocks, such as profit-taking and regulatory uncertainty, could derail the rally.Successful investing in this environment requires thorough research, diversification, risk management, and a keen awareness of market dynamics.Remember, the crypto market is a marathon, not a sprint.Take the time to learn, adapt, and make informed decisions.

Key Takeaways:

The US-China tariff agreement has improved risk sentiment and boosted the crypto market.
Altcoins are likely to follow Bitcoin's lead and experience gains.
Potential tax relief could further fuel the rally.
Skepticism and potential roadblocks remain.
Thorough research and risk management are essential.

Disclaimer: This article is for informational purposes only and does not constitute financial advice.Always do your own research before investing in cryptocurrencies.