Trump Team Claims China Deal Near, Crypto Reacts with Caution

US Treasury Secretary Scott Bessent claims “substantial progress” in US-China trade talks following a UK trade agreement, though critics note a lack of concrete details.The negotiations aim to address steep reciprocal tariffs (145 per cent US on Chinese imports, 125 per cent Chinese on US goods).Cryptocurrency markets have responded cautiously to these developments, with Bitcoin maintaining above US$104k while Ethereum, XRP and Solana decline, as the Fear-and-Greed Index moves from neutral to Greed territory.Xapo Bank’s Head of Investment argues Bitcoin’s recovery above US$100k represents more than speculative excitement, suggesting a flows-driven market shift amid accumulation by whales and continued ETF demand.Following a “trade deal” with the UK – hint: it wasn’t really as great a deal as Trump would like us to believe – the US has come out and patted itself on the back saying a deal with China is close. Treasury Secretary Scott Bessent told the press on Sunday that talks between the two sides are making “substantial progress”: We will be giving details tomorrow, but I can tell you that the talks were productive. Scott Bessent, US Treasury Secretary The United States had slapped China with 145 per cent tariffs on imports, which Beijing met with a 125 per cent levy on goods from the US.Critics have argued that the lack of detail means there is no real “deal” and that this – like the UK “deal” – feels more like a roadmap to a deal.“progress between the United States and China” ≠ “China Trade Deal”This post is intentionally misleading and offers zero specifics. Unless Trump walks back his disastrous tariffs, there will be supply chain shortages and price hikes across America.— Bhavik Lathia (@bhaviklathia) May 11, 2025Though details are unknown, a Bloomberg report stated that the Chinese delegation echoed US statements and highlighted a productive meeting.Related: “My $120k Target May Be Too Low”: Standard Chartered Analyst Raises Bitcoin Forecast as ETF Inflows AccelerateCrypto Market Reserved on China-US TalksThe crypto market has reacted with hesitation, Bitcoin (BTC) is holding up just above US$104k (AU$162k), up slightly over the past day by just 0.06 per cent.Ethereum (ETH), XRP (XRP) and Solana (SOL) are all down in the meantime. The whole crypto market has a market cap of US$3.3 trillion (AU$5.13 trillion) and a 24-hour volume of US$124.25 billion (AU$193.36 billion).The Fear-and-Greed Index has moved back into Greed territory over the weekend, going up from 52 (neutral) to 70.Fear and Greed Index, source: alternative.me“Bitcoin Is Back”, Says AnalystNevertheless, some analysts say Bitcoin’s move back above US$100k (AU$155.6k) “reflects a renewed sense of confidence in the market”.Gadi Chait, Head of Investment at Bitcoin-native Xapo Bank, told Crypto News Australia in an emailed statement that, although part of its recent rally can be attributed to fading doubts over Trump’s tariff outlook, Bitcoin’s strong rebound highlights its deep-seated long-term promise.Read also: Bhutan Unveils World’s First Nationwide Crypto-Powered Tourism SystemThe steady performance – standing out against many cryptos still trailing well below their late-2024 highs – shows Bitcoin’s role as a foundational asset in the global financial framework.Chait argues that Bitcoin’s latest surge past US$100k isn’t just speculative excitement but a clear sign of a flows-driven market shift: This move above $100,000 should be viewed as more than mere euphoria, but rather as evidence of a flows-driven shift. Whales have been accumulating on-chain, ETF demand continues to set new records, and investors seek “neutral” assets amid a tariff-shadowed macro environment. Meanwhile, the announcement of a U.S.–U.K. “mini-deal” and hints of tariff relief with China have reduced overall risk aversion, lifting equities, oil, and, notably, Bitcoin. Gadi Chait, Head of Investment at Xapo Bank The US spot Bitcoin exchange-traded funds (ETFs) added another US$321.4 million (AU$500.5 million) on their latest trading day (Friday), as data from Farside shows. The funds now hold a combined 1.17 million of the 21 million total BTC – a whopping 5.59 per cent.Related: Coinbase Passed on Saylor-Style Bitcoin Bet to Safeguard CashThe post Trump Team Claims China Deal Near, Crypto Reacts with Caution appeared first on Crypto News Australia.