Why the US - China Tax Reduction in 90 Days Could Push Bitcoin Price Over 110,000 USD

Bitcoin and the entire cryptocurrency and stock market have been governed by the tariff war sparked by US President Donald Trump after being sworn in. The initial wave of tariff hikes on countries like China caused a major crash across financial markets, causing the price of Bitcoin to drop below $80,000. However, the tariff war is nearing an end with the latest announcement from the White House regarding trade between the United States and China. The White House announced a fall in tariffs on China. In April 2025, U.S. President Donald Trump announced a sharp increase in tariffs on Chinese goods to a high of 145%, with more than 180 countries also seeing tariff increases. This caused a wave of panic and retaliation, triggering what is now known as the ‘tariff war’. As discussions progressed, another announcement in April revealed a 90-day tariff suspension for other countries, except China. While China has not yet granted an exemption, the 90-day suspension has had a positive impact on the market as the price of Bitcoin has recovered, leading the crypto market to rise as well. Since then, the price of Bitcoin has recovered above $100,000, and the stock market has seen many green days. Trade negotiations have taken place between China and the United States since then, and a temporary measure has now been introduced. In a statement on the White House website, it was announced that both the Chinese and U.S. governments at the U.S.-China Economic and Trade Conference in Geneva agreed to amend their respective applications and implement a suspension of 24 percentage points in tariffs. This agreement is expected to be effective for an initial period of 90 days, allowing both parties time to further discuss toward a solution. The statement indicated that this is done in the “spirit of mutual openness, continued communication, cooperation, and mutual respect.” Why can the price of Bitcoin explode? Currently, the rise in Bitcoin prices is being driven by positive news surrounding tariffs. Therefore, it is expected that there will be even more positive news to drive prices up. The agreement between the United States and China states that both countries must implement the reduction of tariffs before May 14, 2025. With only one day left, this deadline could trigger another price increase. When news of the suspension order began to spread, it signaled that there would be no negative news related to tariffs for at least the next three months. This provides time and, most importantly, confidence in risk assets like Bitcoin for investors seeking profits. With the return of investors to the risk market, the price of Bitcoin could quickly surpass $110,000 as early as Wednesday.