Bitcoin saw a sharp increase on May 12, 2025, temporarily surpassing the $105,000 mark following the announcement of a new trade agreement between the United States and China. Markets responded positively to the news of a 90-day reduction in tariffs between the world’s two largest economies.
According to a joint statement, the U.S. and China agreed to significantly lower mutual tariffs starting May 14. The deal was the result of negotiations involving U.S. Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng.
Under the agreement, tariffs will be reduced by 115% for a period of 90 days, with Chinese goods facing a 30% tariff and U.S. goods a 10% rate. However, certain sensitive sectors—such as fentanyl imports from China to the U.S.—remain unaffected by the deal.
Both sides also pledged to establish a mechanism for continued discussions on trade and economic relations. Most analysts view the agreement as a temporary easing in the long-standing trade conflict between the two nations. However, some remain cautious. “Markets are taking this at face value, but if long-term tariff reductions are the goal, why implement them in such a temporary fashion?” asked Nordea chief analyst Jan von Gerich in a comment to Reuters.
In addition to the crypto market, U.S. equity futures also rose in response to the news. Futures for the S&P 500 climbed 2.7%, while Dow Jones futures were up 2%, according to TradingView. A stronger market reaction is expected once U.S. trading opens.
