‘Thanks to Trump, a Sigh of Relief’… Bitcoin Rebounds Despite Trade War Fears

▲ United States, China, Bitcoin / ChatGPT-generated image

News has emerged that the U.S. government plans to refrain from increasing tariffs on China and maintain them at current levels. As fears of an escalating trade war eased, Bitcoin (BTC) staged a strong rebound, breaking above the psychological resistance level of $66,000.

Bitcoin surged more than 4% in a single day on the news that the United States would not impose additional tariff hikes on Chinese products. After falling below $65,000 the previous day when President Donald Trump did not mention cryptocurrencies in his State of the Union address, Bitcoin quickly demonstrated resilience and erased market concerns once macroeconomic uncertainty subsided.

The rally began after Jamieson Greer, U.S. Trade Representative (USTR), said in an interview with Fox Business that tariffs on Chinese goods would be maintained at 35% to 50%. Greer stated, “We do not intend to escalate further and plan to adhere to existing agreements.” The remarks proved decisive in calming market fears that the U.S.-China trade war would re-intensify following the Supreme Court’s ruling on Trump-era tariffs.

Historically, U.S.-China trade tensions have weighed heavily on the cryptocurrency market. When President Trump announced reciprocal tariffs last year, Bitcoin prices suffered a significant blow, and on October 10—when a 100% tariff threat on Chinese goods was raised—the market experienced a sharp sell-off. However, the decision to freeze tariffs has increased the likelihood that a trade truce will be extended at next month’s summit between President Trump and Chinese President Xi Jinping, fueling a relief rally in the market.

Bitcoin’s upward momentum is also aligned with expectations surrounding Nvidia’s fourth-quarter earnings announcement. Market participants anticipate that Nvidia, currently the world’s largest company by market capitalization, will deliver an earnings surprise, reinforcing the strength of the artificial intelligence boom and positively impacting global asset markets overall. According to Polymarket data, the probability that Nvidia will exceed quarterly earnings expectations stands at 95%.

However, market experts continue to warn of downside risks. Crypto research firm 10x Research has suggested that Bitcoin could soon fall below $60,000, while on-chain analytics platform CryptoQuant noted that the Coinbase premium—an indicator of U.S. investor demand—remains weak. JPMorgan CEO Jamie Dimon also cautioned that current market conditions resemble those preceding the 2008 financial crisis, urging investors to exercise prudence.

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