Bitcoin Pushes Toward $109K as U.S. Announces Major Tariff Cuts on Chinese Products, Dropping to 30%.

Bitcoin Nears Record Highs as U.S.-China Tariff Deal Sparks Market Rebound

Bitcoin (BTC) is on track to reach new all-time highs, buoyed by a series of positive developments, including a groundbreaking U.S.-China trade agreement that has calmed fears of inflationary pressures and helped lift market sentiment. The leading cryptocurrency surged past $105,000 on the back of a surprising tariff reduction between the world’s two largest economies, signaling a potential slowdown in inflation and a boost to risk assets like Bitcoin.

After two days of high-level talks in Geneva, U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer announced that the U.S. and China had agreed to temporarily lower tariffs on each other’s goods. The U.S. will reduce its tariffs on Chinese products from 145% to 30% for the next 90 days, while China will cut its tariffs on U.S. goods from 125% to 10% during the same period. This agreement helped fuel optimism in the markets, with Bitcoin prices climbing by more than 1.5% in the past 24 hours.

The tariff reduction comes after weeks of escalating trade tensions between the U.S. and China, which had caused anxiety in global markets. As the trade war threatened to inject inflation into the global economy, previous CPI data was largely seen as outdated. However, with trade tensions now easing, inflation expectations may cool, which could provide an ideal environment for Bitcoin to surge toward new record highs.

Analysts are now eyeing the release of the April CPI data, which could show a moderation in inflation, further supporting Bitcoin’s upward momentum. The market is hoping that the CPI figure will ease to 2.3% year-on-year from 2.4% in March, with core inflation expected to hold steady at 2.8%. This easing in inflation could potentially trigger a rally for Bitcoin, pushing it above the $109,350 mark, a level it has yet to break.

The recent rally has been supported by sustained inflows into Bitcoin-focused ETFs, such as BlackRock’s spot Bitcoin ETF (IBIT), which has amassed over $5 billion in investments. As institutional interest continues to grow, Bitcoin’s prospects for reaching new highs remain strong, especially if the inflation data meets expectations.

With the Federal Reserve maintaining its current stance on interest rates, Bitcoin appears poised to maintain its upward trajectory, potentially consolidating in the $105,000–$115,000 range as it awaits further catalysts.