The trade war between the US and China continues to remain in the spotlight, with President Donald Trump’s mixed signals on tariff negotiations adding to global uncertainty.
Despite some signs suggesting that China is easing tariffs on certain U.S. goods, Donald Trump has yet to offer clear indications of a breakthrough. This ongoing uncertainty has left investors questioning whether a major shift in US-China trade relations is on the horizon.
Donald Trump Brushes Off China Tariff Pause Intentions
Over the past week, reports have emerged that China is quietly rolling back tariffs on select US products, including semiconductors and pharmaceuticals. This move has been seen as an effort to reduce pressure on China’s tech sector.
China is also considering relief on medical gear and chemicals. However, this softer approach has been countered by President Donald Trump’s recent statements. He claimed that the US is in ongoing talks with China, even stating that Chinese President Xi Jinping called him directly. These assertions were quickly denied by Beijing.
A Chinese foreign ministry spokesperson firmly stated, “China and the US are NOT having any consultation or negotiation on #tariffs.” The spokesperson went on to urge the US to stop “creating confusion.” Despite this, Donald Trump later mentioned he would consider removing tariffs on China, but only if Beijing offers something substantial in return. This back-and-forth leaves many wondering about the true state of negotiations and the broader consequences for global trade.
Effect of Tariff News on Crypto Market
The mixed signals from both sides are adding to the ongoing instability in the global economy. Tariffs have already significantly affected trade between the US and China, with the US imposing a 145% tariff on Chinese goods and China retaliating with a 125% tariff on U.S. imports. These actions have escalated the trade conflict, causing uncertainty for businesses and consumers alike.
Meanwhile, the crypto market has seen a significant rally despite the ongoing tariff tensions leading to speculations the bullish momentum maybe a fake rally leading up to a crypto crash. Cryptocurrencies, such as Bitcoin, have gained substantial value amid concerns about global trade disruptions.
Bitcoin price reached $95,000 on Friday, its highest level in 60 days. The crypto market’s surge has been linked to investors turning to digital assets as a safe haven, similar to how gold is traditionally viewed during times of economic uncertainty. However, with the BTC price recently hitting $95,300, crypto analysts Data Dash has highlighted that a potential correction to $60K.
Some predict that if Bitcoin breaks through this resistance, it could target new highs, possibly even reaching the $126,000 range. However, there are signs of bearish divergence, with the yearly open proving tough to breach leading to a potential price pullback according to crypto analyst Ali Charts.
Will Ethereum Price Breach $2K Resistance?
Ethereum is also following a similar path according to crypto analysts CrediBULL Crypto. Currently, the price of ETH is facing resistance around the $1,800 mark. If it can break through this level, it may see a rally toward the $2,000 range in the near term. On the other hand, if the price fails to hold above the $1,800 level, ETH could face a decline, potentially dropping to the $1,500 support levels.
Concurrently, other top altcoins have been performing well too with the XRP, Cardano (ADA), Solana (SOL), Dogecoin (DOGE) and Sui (SUI) soaring over 6%, 14%, 13%, 15% and 66% in the last week respectively. Moreover, according to analysts Michael van de Poppe the altcoins are just starting to rally with a pattern showing a big reversal looming which may set these cryptos up for a bullish rally.
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