Bitcoin rallied to $105,409.03 in reaction to breaking news that the United States reduced tariffs on Chinese imports from 145% to 30% for 90 days.

China responded by reducing tariffs on imports from the United States from 125% to 10%. Investors are seeing the market rally in anticipation of lessening trade tensions and improved global liquidity over the next 90 days.

This announcement comes just a day after a historic trade agreement was achieved between the U.S. and China in Geneva.

The crypto markets reacted immediately. Bitcoin rose from $72,877.39 on April2, to $104,094.00, and the total crypto market cap of $3.3 trillion.

Scott Bessent, U.S. Treasury Secretary, and Jamieson Greer, Trade Representative called the negotiations a success breakthrough as both sides agreed quickly on the top terms.

US China trade war

On April 2, President Donald Trump doubled baseline tariffs on Chinese products to 145%, ratcheting up the trade war with China. Beijing quickly responded with a minimum 125% tariff on U.S. goods as well as banning exports of the rare earth elements crucial to high-tech industries.

The White House presented the decision as an effort to protect American manufacturing and preserve domestic jobs.

Nevertheless, the broad import taxes reverberated through the world economy.

Financial markets were roiled — and the crypto market was hardly immune, as major digital assets all slumped as investors ran for safety in more well-known assets like gold, in the face of growing uncertainty.

On April 2, just days after President Trump said he would raise tariffs on Chinese imports and shook markets’ confidence. Its price fell from roughly $85,000 to as low as $70,000 in the days that followed.

The total value of the cryptocurrency market also saw a decline — bottoming out on April 2 at about $1.7 trillion. The market however started to recover in late April, as geopolitical tensions eased a bit amid tariff talks.