After a week of anticipation and rising expectations, delegates from the US and China finally met in Geneva, Switzerland, to discuss a potential new trade deal. While both countries have issued positive statements about their discussions, the crypto market has responded with a slight retracement. Santiment, a leading analytics platform, has cautioned investors to remain cautious for now.
The US-China Trade Deal
The White House released an official statement highlighting progress in the trade talks, quoting two key US representatives, including Secretary of the Treasury Scott Bessent.
“We made substantial progress between the United States and China in these important trade talks,” said Bessent. “Details will be shared tomorrow, but the talks were very productive… We are confident that the deal we struck with our Chinese partners will work towards resolving the national emergency.”
The discussions stemmed from President Trump’s national emergency declaration over the massive $1.2 trillion trade deficit. Although positive, the statements from both the US and China were vague on specifics, leaving many details still unclear.
Crypto Market’s Response: Proceed with Caution
Following the initial optimism from both Beijing and Washington, stock markets reacted positively, with traders speculating that tariffs could soon be lifted, clearing the way for smoother trade between the two countries. However, Santiment noted that Bitcoin (BTC) initially surged to $105,000 but has since retraced, showing signs of weakness. Many large-cap altcoins are also in the red.
Santiment warned investors that the rise in tariff-related discussions could fuel short-term volatility in the crypto space. They advised caution, suggesting that investors wait for more concrete details before making significant moves.
“If this trade deal reduces the tariffs on exporters and importers for both the US and China, we could see an immediate bullish impact on markets,” Santiment noted. “However, avoid getting caught in ‘buy the rumor, sell the news’ scenarios until the deal’s full details are confirmed.”
What Does This Mean for Crypto Investors?
While the US-China trade talks could have long-term implications for global markets, Bitcoin and other cryptocurrencies might experience volatility in the short term. Crypto investors should stay alert and avoid overextending until further details are released about the deal, as the current market uncertainty could lead to potential price swings.
