The tariffs war between China and the U.S has been quite a nuisance for the crypto market as it has often dampened investor confidence. However, recent developments have been positive with U.S president Donald Trump announcing that the two economic giants have now come into principal agreement for the trade deal.
This news is set to make the economic situation favorable for the crypto market leaving the trade war ordeal that left Bitcoin and other cryptocurrencies crushing in the past. While China and the U.S presidents are yet to approve the deal, the positive development is crucial for crypto investors who are eying a BTC rally to a new all-time high.
U.S.-China Trade Deal on the Horizon after Recent Talks
China and the U.S have been having trade talks in London for the last two days. These talks have resulted in a positive agreement as announced by the U.S president Donald Trump earlier today. However, the deal is pending final approval from Chinese President Xi Jinping and Donald Trump.
Trump explains that the U.S will get access to Chinese rare earth minerals, and magnets. This is a strategic milestone for the U.S as officials pushed for it at Lancaster House on Monday and Tuesday. “Full magnets, and any necessary rare earths, will be supplied, up front, by China,” Trump wrote.
BREAKING: President @realDonaldTrump says US trade deal with China is done. Huge news…. pic.twitter.com/Q6l6TEoD4f
— Piers Morgan (@piersmorgan) June 11, 2025
In return, Chinese students will have access to U.S colleges and universities which Trump claimed has always been right with him. From the deal, the U.S will get a total of 55% tariffs while China will get a total of 10% tariffs.
Trump also highlighted that the rapport with China is currently “excellent,” unlike his earlier statements, which accused Beijing of being “not easy” to negotiate with. The U.S.-China trade deal will thus ease the tensions between the two superpowers and strengthen supply chains. In particular, industries dependent on rare earth minerals, including defense, electronics, and electric vehicles will benefit.
Technical Indicators Point to a Bitcoin Price Pullback
The technical indicators are flashing red, depicting that Bitcoin could be in line to pull back. BTC’s daily chart has a bias towards the bearish side with a possible correction to the important support at $105,600. The level corresponds to the quarterly and the current monthly Volume Weighted Average Price (VWAP), thus it is an important support zone.
However, a resolute decline below $105,600 might set the stage for a more significant decline. The next level to watch for BTC sits at $104,700, where a naked point of control (nPOC) exists. A nPOC is a high-volume price area where the highest concentration of trades has occurred during a specific timeframe. It indicates a potential support or resistance, and could influence future price movements.
Bitcoin is trading at $109,663 as at press time. Should it revisit the support at $104,700, it may provide a tsunami of buy-orders and result in a price recovery. In that case, BTC may rally again to around $110,000 and even shoot to a new all-time high. In the meantime, crypto traders will continue to monitor the upcoming inflation data since any hawkish move will increase volatility in both crypto and traditional markets.
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