Starting Monday, May 12, 2025, American President Donald Trump announced a massive reduction in Chinese tariffs. Following a mutual understanding between both countries, the U.S. will cut tariffs on Chinese goods from 145% to 30%, and China will slash duties on U.S. imports from 125% to 10%.
Notably, the tariff increase last month had a drastic impact on different U.S.-based and global financial markets, as both involved countries are vital to worldwide marketing. Bitcoin (BTC) dropped below the $75,000 mark, liquidating many bullish traders.
Bitcoin Reacts
Following Monday’s announcement, the crypto market witnessed a sharp uptrend, as the update favored the digital asset ecosystem. BTC, the world’s leading crypto, which has been gearing up for a price pump within the past few days, gathered momentum, broke out, and surged to $105,800 within an hour after the statement. The crypto sits less than 4% away from hitting a new all-time high.
Furthermore, other high-cap cryptos joined the uptrend. Ethereum (ETH) surpassed the $2,600 mark, an over 40% increase within the past seven days. Solana (SOL) also tested the $180 mark, surging by over 22% since last Monday. Binance coin (BNB) surpassed $685, while Dogecoin (DOGE), the world’s first memecoin, has recorded more than 45% surge in a week.
Consequently, the crypto market fear and greed index (FGI) has risen past 70, signaling massive greed and investors’ rekindled confidence in the market. In contrast, the tariff slash was unfavorable for the commodity market, as Gold (XAU) plunged to the $3,200 region, a 4% decrease within a few hours.
Bull Market Incoming
According to popular market analysts 10x Research, Bitcoin has displayed signs of an uptrend since April 13, 2025, when it soared above the $84,500 trend line. Fast-forward a month later, and the apex coin has moved up by over 25%, signaling a change in market structure to the bullish side.
The analyst noted that macroeconomic factors like the recent tariff adjustment and easing inflation fears would fuel the uptrend. Exchange-traded funds (ETF) inflows, institutional and national bitcoin adoption would also not be left out as predominant factors to fuel the crypto market uptrend.
Meanwhile, early investors have filled their bags with BTC, preparing to swim in profits if the uptrend continues.
