Tom Lee Suggests Easing US-China Trade Tensions Could Boost Bitcoin and Equities

• Bitcoin surges to $113,851 high as trade optimism grows.

• Ether approaches $4,100, reflecting renewed investor confidence in risk assets.

• Over $19 billion in crypto liquidations earlier this month highlight the volatility tied to trade policies, per CoinGecko data.

Explore how easing US-China trade tensions are driving Bitcoin and Ethereum gains in 2025. Discover expert insights from Tom Lee and potential market impacts—stay ahead in crypto investing today.

What is the impact of the US-China trade deal on Bitcoin?

US-China trade deal developments are significantly influencing Bitcoin’s price trajectory by alleviating global economic uncertainties that previously triggered massive sell-offs. As tensions diffuse, Bitcoin has rebounded sharply to an intraday high of $113,851, according to CoinGecko data, signaling strong investor appetite for risk assets. This positive shift not only stabilizes cryptocurrencies but also correlates with gains in US equities, as noted by market analyst Tom Lee.

How are de-escalating trade tensions benefiting Ethereum prices?

De-escalating trade tensions between the US and China have directly contributed to Ethereum’s recovery, pushing its price close to the $4,100 level amid broader market optimism. Earlier this month, the announcement of 100% tariffs on China led to over $19 billion in cryptocurrency liquidations within 24 hours—the largest single-day wipeout on record—severely impacting Ether alongside other assets. However, recent high-level talks at the ASEAN summit in Malaysia have shown signs of progress, with the US agreeing to postpone those tariffs, as reported in an interview with Treasury Secretary Scott Bessent by The Washington Post.

In response, China has delayed its curbs on rare earth metals exports by a full year, easing supply chain fears that could disrupt tech and manufacturing sectors reliant on these materials. This mutual de-escalation has injected renewed confidence into global markets, benefiting Ethereum by reducing the perceived risks associated with international trade disputes. Ethereum’s price action mirrors Bitcoin’s, underscoring how interconnected crypto markets are with macroeconomic events.

Permabull Tom Lee, a prominent market strategist, has emphasized that such developments will not only support cryptocurrencies like Bitcoin and Ethereum but also bolster US equities. In his analysis, Lee highlights that resolving trade frictions removes a major overhang, allowing capital to flow back into high-growth assets. Historical data supports this view; during previous trade truce periods, Bitcoin has seen average gains of 15-20% in the following weeks, while Ethereum often outperforms due to its utility in decentralized finance applications.

From an expert perspective, the de-escalation aligns with patterns observed in 2019 and 2020 trade negotiations, where temporary agreements led to immediate rallies in risk-on assets. Economists tracking these events note that rare earth metals, critical for electronics and renewable energy tech, directly influence sectors that drive Ethereum’s ecosystem growth through blockchain integrations. As talks progress, analysts anticipate a full-fledged US-China trade deal could materialize soon, further catalyzing price appreciation.

The initial tariff announcement created widespread panic, with crypto markets experiencing heightened volatility. Bitcoin dropped sharply before recovering, and Ethereum followed suit, dipping below key support levels. Yet, the swift reversal in policy signals—postponed tariffs and delayed export restrictions—has restored balance. Market participants are closely monitoring upcoming negotiations, as any concrete agreement could push Bitcoin beyond its recent high and Ethereum firmly above $4,100.

Frequently Asked Questions

What caused the recent $19 billion crypto liquidation tied to US-China trade tensions?

The $19 billion liquidation stemmed from the White House’s announcement of 100% tariffs on China, sparking fears of global economic slowdown and prompting mass sell-offs in risk assets like Bitcoin and Ethereum. This event marked the largest crypto wipeout in history, as traders liquidated leveraged positions to mitigate losses from the sudden policy shift.

Will a US-China trade deal boost Bitcoin and Ethereum in 2025?

Yes, a US-China trade deal is likely to boost Bitcoin and Ethereum prices in 2025 by reducing trade war uncertainties and encouraging investment in risk assets. As tensions ease, historical trends show cryptocurrencies rebounding strongly, with experts like Tom Lee forecasting gains for both digital currencies and related equities in a more stable global environment.

Key Takeaways

• Trade De-escalation Drives Recovery: Postponed US tariffs and delayed Chinese export curbs have led to Bitcoin’s $113,851 high and Ethereum’s push toward $4,100.
• Expert Optimism Prevails: Tom Lee’s analysis links diffusing tensions to benefits for Bitcoin, Ethereum, and US stocks, based on past trade resolution patterns.
• Monitor Ongoing Talks: A potential full trade deal could sustain upward momentum—investors should track ASEAN summit outcomes for further signals.

Conclusion

The diffusing US-China trade tensions represent a pivotal moment for Bitcoin and Ethereum, with price surges to $113,851 and near $4,100 underscoring the cryptocurrencies’ sensitivity to geopolitical shifts. As reported by The Washington Post through Treasury Secretary Scott Bessent’s insights, these de-escalations pave the way for potential trade deals that could stabilize and elevate markets. Looking ahead, sustained progress in negotiations may foster long-term growth in digital assets, urging investors to remain vigilant and strategically positioned for emerging opportunities in 2025.