Bitcoin (BTC) and Traditional Markets May Be Poised to Rally After US-China 90-Day Tariff Agreement: Analysis

A 90-day tariff agreement between the US and China may set the stage for a broader recovery of stock and cryptocurrency markets

A 90-day agreement by the US and China to reduce their tariffs may set the stage for a broader recovery of stock and cryptocurrency markets, as investors also anticipate a potential tax relief package.

The White House announced on May 12 that the two countries will decrease their respective tariffs to 10% for an initial 90-day period beginning May 14 — a 24% cut from current levels.

Speaking at a news conference in Geneva on May 12, US Treasury Secretary Scott Bessent said both governments are aligned on avoiding further economic decoupling.

“The consensus from both delegations is neither side wants to be decoupled,” Bessent said. “What has occurred with these very high tariffs was an equivalent of an embargo, and neither side wants that. We do want trade. We want more balance in trade.”

Both nations will keep their tariffs at 10% for the next 90 days, after which they plan to engage in another round of negotiations to strike a broader trade deal. The two economic superpowers will also cooperate on new areas of economic partnership, according to a joint statement from the US and China.

Pointing to the constructive tone of the negotiations, and the 90-day suspension of additional tariffs, Aurelie Barther, principal research analyst at crypto intelligence platform Nansen, said this removes the risk of “sudden re-escalation.” This may help altcoins and traditional stock markets follow Bitcoin’s (BTC) price recovery.

“Bitcoin is already trading very close to its all-time high,” Barther told Cointelegraph. “But with the latest easing in trade tensions, it now appears that altcoins, US equities, and the US Dollar Index (DXY) are well-positioned for a catch-up rally.”

She noted that Bitcoin has outperformed other major risk assets in recent months due to its insulation from tariff-related risks.

“I would also expect the dollar to perform strongly against prior 'safe-haven' currencies like the euro, Swiss franc and Japanese yen, reflecting the improved global risk sentiment.”

Nansen previously predicted a 70% chance for crypto and stocks to find their bottom by June, with their price recovery depending on the outcome of trade negotiations.

Tax relief could amplify rally

Bitcoin is currently 4.8% away from recapruring its all-time high of over $109,800, reached in January 2025, according to CoinMarketCap data.

“There is potential for risk assets to move beyond the January peak levels if we see a generous tax cut package materialize,” Barther added.

She noted that Bessent hinted such a package could be unveiled by mid-July, which would act as a “significant additional catalyst” for the markets.

The constructive trade negotiations, paired with emerging technical chart patterns, have spurred analyst calls for a Bitcoin rally to $150,000, depending on the outcome of an emerging bull flag pattern on the weekly chart.