- Bitcoin’s response to possible US-China trade developments could reveal whether it acts as a safe asset during market uncertainty.
- Bitcoin remained strong during April’s stock sell-off after the US announced new tariffs, while major indexes fell.
- Analysts suggest a confirmed trade agreement could influence Bitcoin’s price, but a clear announcement is needed for continued momentum.
Bitcoin showed significant resilience during a major downturn in stock markets in April, after new tariffs were announced by former US President Donald Trump. Market observers are watching closely to see how Bitcoin’s price reacts to ongoing trade talks between the United States and China. These moves could indicate if Bitcoin is currently viewed as a safe-haven asset by global investors.
On April 7, Bitcoin dipped to about $75,000 but later recovered sharply, rising 27% to trade at roughly $95,000 by the end of the month. Meanwhile, important stock indexes like the S&P 500 and Nasdaq fell during the same period. According to crypto trader Daan Crypto, the strong performance of Bitcoin might be linked to suggestions that some countries use Bitcoin to bypass tariffs. However, Daan Crypto noted that if a trade deal is reached, Bitcoin’s outperformance may end.
“Theoretically speaking, if the trade uncertainty was what was making BTC outperform, it should stop outperforming after we hit the most important deal, which includes China,” explained Daan Crypto (source).
On May 11, the White House reported that US-China trade negotiations had made substantial progress, although no formal deal was announced. US Treasury Secretary Scott Bessent stated, “We will be giving details tomorrow, but I can tell you that the talks were productive.”
Some analysts believe a completed trade deal could drive Bitcoin’s price higher, especially if it is accompanied by potential interest rate cuts. Jeff Mei, Chief Operations Officer at BTSE, told Cointelegraph, “We believe that institutional investors are less apprehensive about investing in Bitcoin and crypto as US-China trade talks come to a conclusion and the likelihood of rate cuts increases.” Researcher Jupiter Zheng at HashKey Capital added, “A US-China trade deal could signal stability in global markets, potentially driving investors to seek growth opportunities and send capital into alternative assets.”
If a trade agreement weakens the US dollar or accelerates new investment in emerging markets, Bitcoin could reach new price highs, Zheng noted. However, analyst Will Clemente posted on X that only a decisive trade announcement is likely to keep Bitcoin’s momentum strong. “Feels like you’re gonna need a real, tangible announcement on the China front to keep things moving here locally, momentum starting to stall out on BTC for the first time in a bit,” he commented (source).
While traders await further news, some remain confident that Bitcoin’s recent strong performance is tied more to global market changes than just tariff concerns. Further details on US-China trade talks are expected soon, according to officials.
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