The cryptocurrency market has faced significant challenges since the beginning of the year. Ongoing macroeconomic concerns, including inflationary pressures, rising interest rates, and fears of a potential global recession, have weighed heavily on investor confidence. Additionally, geopolitical tensions have created further uncertainty, making it difficult for the market to gain momentum.
However, there may be a shift on the horizon. A potential US-China trade deal, which could ease economic tensions and stabilize global markets, is being viewed as a possible catalyst for a cryptocurrency rally. Analysts suggest that such a deal could restore optimism and push Bitcoin toward reaching a new all-time high by 2025.
Bitcoin surged following news of a new tariff agreement between two countries. The deal includes a 90-day pause and reduction in existing import duty increases, fueling optimism for a potential long-term trade deal. If successful, this could positively impact Bitcoin and other financial markets.
US-China Trade Agreement Nears: Could Bitcoin Surge Next?
In early April, the United States introduced its new ‘Liberation Day’ tariff plan, imposing a 10% import tax on all countries. This triggered retaliatory measures from other nations, prompting the US to raise the tax even further. As a result, tariffs on China reached as high as 245%, according to the White House.
This raised concerns about a potential trade war between the world’s two largest economies. However, a 90-day tariff reduction deal might prevent that outcome. Interestingly, the crypto market has surged in response, leading many to speculate whether Bitcoin could benefit from a US-China trade agreement and hit a new all-time high by 2025.
Bitcoin (BTC) reached an impressive milestone on 12 May 2025, surging to $105,000. This marks a significant moment for the cryptocurrency, which has seen a 22% increase over the past 30 days, according to data from CoinMarketCap.
Notably, this new peak is the highest BTC has reached since its all-time high of $109,356 in January 2025. Analysts suggest this upward trend may continue as global interest in cryptocurrencies remains strong, and Bitcoin’s role as a digital asset solidifies further.
So, could Bitcoin reach the $110,000 mark if a new trade deal is finalized? It won’t be without challenges. The leading cryptocurrency faces key resistance at $106,400, with support around $102,500. For now, all attention is on how traders respond to the ongoing rise and whether profit-taking will become the main barrier to achieving this milestone.
Also Read: Bitcoin (BTC) Retakes $105k: Why Is BTC Up Today?
Disclaimer
The information in this article should not be considered financial advice, and the OvenAdd platform is intended only to provide educational and general information. Please conduct your own research and consult a financial advisor before making any investment choices.
