Bitcoin just shattered expectations, soaring past $105,000 after news of a US tariff suspension between the United States and China broke early Monday. This unexpected policy shift triggered a sharp rally across crypto markets, pushing BTC close to its all-time high and reigniting bullish momentum.
Bitcoin Explodes After US Tariff Suspension
Markets were quick to respond after China confirmed that the US tariff suspension would go into effect immediately. The move signals a cooling of trade tensions between two of the world’s largest economies — a development investors interpreted as a green light for risk-on assets like cryptocurrencies.
Within hours, Bitcoin spiked over 12%, breaking key resistance near $95,000 and accelerating past the $105K mark. Ethereum followed suit, reclaiming $3,000 for the first time in over a month.
Key Stats:
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BTC price: $105,450 (+12.8%)
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ETH price: $3,012 (+10.1%)
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24-hour liquidations: $367M across shorts
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Crypto Fear & Greed Index: 80 (Extreme Greed)
Why the US Tariff Suspension Matters for Crypto
The US tariff suspension does more than just cool off trade battles — it injects confidence into global markets. Crypto assets, often viewed as risk-on, thrive in environments where uncertainty is reduced and liquidity flows freely.
“Any sign of geopolitical cooperation, especially between the US and China, is bullish for Bitcoin,” said Matrixport analyst Daniel Kim. “This US tariff suspension is a clear macro tailwind.”
The easing of tariffs also supports industrial production in both countries, a critical factor given China’s strong influence on Bitcoin minnig and hardware manufacturing.
Altcoins, Gold, and Stocks React
The US tariff suspension wasn’t just good news for Bitcoin. Altcoins such as Solana (+9.4%), Chainlink (+11.2%), and Render (+13.6%) rallied sharply. Meanwhile, gold prices dropped by over 2% as investors rotated into higher-yielding assets.
US equities also rallied. The Nasdaq gained 1.8%, while the S&P 500 hit new year-to-date highs, reflecting renewed investor optimism tied to the trade truce.
What About the Fed?
With inflation still stubbornly above target, the Federal Reserve has remained hawkish. However, the US tariff suspension eases pressure on supply chains, which could help tame price pressures, potentially giving the Fed more room to pivot dovish later this year.
Traders on CME futures raised odds of a September rate cut from 42% to 61% following the news.
On-Chain Metrics Confirm Bullish Momentum
On-chain data supports the bullish outlook:
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Exchange outflows surged to 18-month highs
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Whale wallets (10K+ BTC) added over $1.2B in BTC
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Stablecoin inflows increased 9.5% week-over-week
“This isn’t just a news-driven pump,” said CryptoQuant CEO Ki Young Ju. “Strong fundamentals and institutional accumulation back it.”
What’s Next for Bitcoin?
With the US tariff suspension and macro backdrop turning favorable, some analysts are now eyeing a move toward $120K.
However, traders remain cautious about potential reversals if the truce unravels or inflation data disappoints.
“If the suspension becomes permanent and rate cuts follow, BTC could hit $150K by year-end,” said Bitwise CIO Matt Hougan”.
Conclusion
In conclusion, the US tariff suspension has proven to be a game-changer for the cryptocurrency market, reigniting investor confidence and fueling a remarkable rally in Bitcoin and altcoins. As global economic tensions ease, the crypto space stands to benefit from increased liquidity, improved market sentiment, and renewed institutional interest.
While the long-term impact remains uncertain, this surge highlights the crucial role that geopolitical events play in shaping the digital asset landscape. As the market continues to react to policy changes, traders and investors will be closely monitoring any further developments. For now, it seems clear that the US tariff suspension has opened the door for exciting new possibilities in the crypto world.
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FAQs
1. What is the US tariff suspension?
The US tariff suspension refers to the temporary halt of import taxes imposed by the United States, particularly in trade with China, to reduce economic tension and encourage trade flow.
2. Why did the US tariff suspension impact Bitcoin?
Bitcoin and other crypto assets are considered risk-on investments. The US tariff suspension reduced global economic uncertainty, encouraging institutional and retail investors to re-enter the crypto market.
3. How does the US tariff suspension affect inflation?
Suspending tariffs can reduce the cost of imported goods, which may ease inflationary pressure, especially on goods with supply chain bottlenecks. Lower inflation supports looser monetary policy, which benefits crypto prices.
4. Could the US tariff suspension be reversed?
Yes, the suspension is temporary. If negotiations fail or geopolitical tensions rise again, tariffs could be reinstated—potentially reversing some of the market gains seen after the announcement.
5. Does the US tariff suspension benefit only crypto?
No. While crypto benefited sharply, the US tariff suspension also lifted global stock markets, reduced gold demand, and improved investor sentiment across risk assets, including tech stocks and industrials.
Glossary
US Tariff Suspension
A government policy decision to pause import taxes, especially in the context of easing trade tensions between major economies like the US and China.
Risk-On Asset
A financial asset that tends to perform well when investors are confident and global economic conditions are favorable—includes stocks and cryptocurrencies.
Whale Wallet
A crypto wallet holding a large amount of a digital asset, usually defined as 1,000 BTC or more. These entities can significantly influence market trends.
Stablecoin Inflows
The movement of stablecoins (like USDT or USDC) into exchanges often signals new capital entering the market for trading or investment.
On-Chain Metrics
Analytical data derived directly from a blockchain network, used to track user behavior, whale activity, and overall market health.
