Bitcoin reacts while China and the United States open trade negotiations

Today, May 10, the commercial negotiations between China and the United States began in Geneva, Switzerland.

The meetings, which will run until tomorrow, have the participation of senior officials from both countries. On the part of the United States, the Treasury Secretary, Scott Besent, and the commercial representative, Jamieson Greer attend. China is represented by the Vice Prime Minister He Lifeng.

As reported cryptootics, Donald Trump, president of the United States, applied 145% of import tariffs from Chinawithin the framework of the «commercial war.»

The authorities of the Asian giant answered applying a 125% tax to US products.

The tariffs ended up suffocating the two main economies of the world and left sequelae in the markets, before the ghosts of a possible recession.

In principle, because bilateral trade between the two countries is around 700,000 million dollars annually, but with current tariffs it is estimated that 90% of that flow will be eliminated, according to Bloomberg Economics.

The volume of shipments from China to the United States has fallen by 21%, while Chinese factories have slowed or detained assembly lines. At the same time, the Chinese economy faces weak manufacturing figures and a deflationary spiral.

In the United States, products are anticipated, especially in sectors such as transport, logistics and retail trade, in a context where the economy was first contracted since 2022.

Before his trip to Switzerland, Besent himself admitted that tariffs at his current levels are «unsustainable», while stating the need to reach an agreement with China. «145% or 125% is equivalent to an embargo. We don’t want to decoupling. What we want is a fair trade,» he said.

Donald Trump, meanwhile, said that «we have to make a great agreement for the United States,» and said: «I think we will return with a fair treatment for China and for us.»

These advances in Negotiations revived the appetite for the assets considered risksuch as actions, Bitcoin (BTC) and cryptocurrencies.

Because? Because the market interprets these signals as a relief to the global tension climate, which favors risk taking, promotes capital entry into digital assets and reduces fear of economic deceleration.

In simple terms, speculators prefer a stable macroeconomic environment because there are fewer risks and, therefore, greater possibility of gain. Without tensions, they are encouraged to bet on volatile assets such as BTC.

Other factors that impact the price of Bitcoin are also added to the meeting in Geneva. One of them is the speech of the president of the Federal Reserve (Fed), Jerome Powell, who avoided clear definitions about interest rates, although he did not rule out possible cuts this year. Another is the signing of a commercial agreement between the United States and the United Kingdom.

That accumulation of news reinforced the climate of optimism in the markets and generated an impulse in the currency created by Satoshi Nakamoto, which was contributed again above $ 100,000 after two months.

If at this point of the article someone still doubts that the appetite for the risk returned to the market, it is enough to look that Three of the five cryptocurrencies with better weekly performance are memecoins: pepe (PEPE), dogwifhat (WIF) y brett (BRETT).

In addition, most digital assets that make up the Top 100 market capitalization are painted green.

The concrete thing is that, any novelty or progress in negotiations between the United States and China, will be an extremely bartey factor for BTC and cryptocurrencies.