Tariff Truce Sparks Market Rally, Bitcoin Holds Steady

In a significant step toward easing global trade tensions, China has announced a major reduction in tariffs on U.S. goods, lowering them from 125% to 10%. In response, the United States will cut its own tariffs on Chinese products from 145% to 30%. These new rates will be in place for 90 days, offering a temporary window for both countries to engage in further negotiations.

The announcement sent a wave of optimism through global equities and commodities markets, which responded with notable gains. However, the cryptocurrency market remained relatively subdued in comparison. Bitcoin continued to trade steadily above the crucial $104,000 level and is edging closer to $105,000. Analysts attribute the muted crypto reaction to the fact that Bitcoin had already begun rallying ahead of the news, suggesting the tariff move could nonetheless act as a catalyst for future gains.

One analyst noted that Bitcoin is currently around day 915 of its typical 1,100-day bull cycle. Historically, the most dramatic price increases occur between days 1,000 and 1,100, raising the possibility of a sharp parabolic move in the near future if past patterns repeat. Adding to the bullish case, Bitcoin’s weekly MACD has turned green — a signal last seen in late 2024 before a strong upward run. The Relative Strength Index also remains far from overbought, indicating further room for growth.

Meanwhile, a decline in Bitcoin dominance suggests that investors are rotating funds into altcoins. Memecoins, in particular, have shown renewed vigor, with some gaining between 10% and 30% in the past 24 hours. The resurgence has sparked comparisons to the late-2023 memecoin rally and raised speculation about whether these volatile assets could again lead the charge.

Traders are now closely watching for the release of U.S. CPI inflation data tomorrow, a pivotal economic indicator that could sway both stock and crypto markets. Additionally, Vice President JD Vance is scheduled to speak at a major Bitcoin conference, further underscoring the growing intersection between politics and digital assets.