Why The US-China 90-Day Tariff Slash Can Push Bitcoin Price Above $110,000

The Bitcoin price and the entire crypto and stock market have been operating at the mercy of the tariff wars ignited by US President Donald Trump after being sworn into office. The initial wave of tariff increases on countries such as China triggered massive crashes across financial markets, plunging the Bitcoin price below $80,000. However, the tariff wars are nearing their end with the latest announcement from the White House regarding trade between the United States and China.

White House Announces Reduction Of China Tariffs

In April 2025, US President Donald Trump had announced a drastic increase of tariffs on Chinese goods to a high 145%, with over 180 countries also seeing tariff increases. This triggered a wave of panic and retaliation, triggering what is now known as the ‘tariff wars.’ As discussions progressed, another announcement in April revealed a 90-day pause on tariffs for other countries, with the exception of China.

While China was yet to exempt, the 90-day pause did have a positive effect on the market as the Bitcoin price recovered, taking the crypto market up with it. Since then, the Bitcoin price has since recovered above $100,000, as well as the stock market seeing multiple green days.

Trade talks have since been ongoing between China and the United States and there has been a stopgap put in place for now. In a statement on the White House website, it was announced that both the Chinese and United States government at the US-China Economic and Trade Meeting in Geneva had agreed to modify their respective applications and implement a suspension of 24 percentage points of tariffs.

This agreement is expected to be in place for an initial period of 90 days, giving both parties time for more discussions toward a resolution. The statement read that this was done in “the spirit of mutual opening, continued communication, cooperation, and mutual respect.”

Why The Bitcoin Price Could Explode

Currently, the rally of the Bitcoin price is being driven by the positive news surrounding the tariffs. So, it is expected that more positive news will continue to drive up the price. The agreement between the US and China states that both countries should have implemented the tariff reduction by May 14, 2025. With only a day left, this deadline could trigger another rally.

As the news of the suspension begins to make the rounds, it signals no negative news coming out regarding tariffs for the next three months at least. This gives time and most importantly, confidence in risk assets such as Bitcoin for investors looking for gains. With the return of investors into the risk market, the Bitcoin price could quickly cross $110,000 as early as Wednesday.