Crypto Market Rally Slows as Bessent Warns of Lengthy U.S.-China Trade Deal
The crypto market’s recent rally lost some steam on Wednesday after U.S. Treasury Secretary Scott Bessent reiterated that a substantial trade deal between the U.S. and China could take several years to finalize.
Bitcoin (BTC) surged by 2.6% in the past 24 hours and 12.2% in the last seven days, reaching $93,600, marking its highest value since March. However, it was outpaced by much of the broader market, as the CoinDesk 20 index — which tracks the top 20 cryptocurrencies (excluding stablecoins, memecoins, and exchange tokens) — jumped 4.2% in the same period. Sui (SUI) surged 24%, while Cardano (ADA) and Chainlink (LINK) saw 7% gains each.
While crypto stocks opened strong, their upward momentum fizzled as the day went on. Bitdeer (BTDR) and Core Scientific (CORZ), which are among the largest crypto miners, lost some of their early gains, closing 4% higher. Other companies, like Coinbase (COIN) and MicroStrategy (MSTR), saw moderate increases of 2.1% and 1.4%, respectively.
In a surprising shift, President Donald Trump dialed down the pressure on China, stating that tariffs on Chinese goods would be significantly reduced. However, Bessent remarked on Wednesday that the U.S. had not proposed any unilateral tariff reductions and emphasized that reaching a formal agreement would take two to three years.
Paul Howard, Director at Wincent, a crypto trading firm, commented, “A meaningful breakthrough in U.S.-China relations may only happen after substantial discussions at the upcoming Xi-Trump summit.” He noted that markets had priced in the initial confrontational rhetoric and tariff concerns, which had dampened risk appetite in the past two months.
“Once the initial turbulence settles, we typically see a shift toward more constructive developments, which could help drive demand for risk assets like cryptocurrencies,” Howard added.
Bitcoin ETF Sees Increased Inflows
In another sign of renewed investor interest, U.S.-listed spot Bitcoin exchange-traded funds (ETFs) have seen nearly $1.3 billion in net inflows this week, according to SoSoValue data. The funds enjoyed their most significant daily inflows since mid-January on Tuesday.
“This rally is being driven by institutional capital rather than retail hype. Investors are positioning themselves ahead of what they see as a new monetary and political regime,” said Matt Mena, crypto strategist at 21Shares, a digital asset management firm. “More investors are treating Bitcoin not just as a speculative asset but as a safe-haven investment in response to the increasing uncertainty across traditional markets.”
Despite the strong price action, Mena noted that Bitcoin might face resistance around the $95,000 level in the short term, potentially leading to a pullback.
Gold Stalls, Bitcoin Poised for Further Growth
In contrast, gold has fallen 2.5% on Wednesday, trading at $3,290 per ounce. After a strong rally that saw the precious metal rise 35% to $3,500, gold’s recent price drop could signal that peak uncertainty in the markets is starting to ease.
Charles Edwards, founder of Capriole Investments, a Bitcoin-focused hedge fund, pointed out that Bitcoin’s price performance could benefit from the slowdown in gold’s momentum. Posting a chart on X, Edwards noted that Bitcoin has often followed gold’s rally, but with a few months’ delay.
“Bitcoin is showing remarkable strength,” Edwards tweeted. “We’ve decoupled from traditional risk assets, and the market is beginning to recognize Bitcoin as digital gold. If traditional assets continue to struggle, Bitcoin will emerge as the ultimate hedge against quantitative easing.”
