In a surprising twist, the ongoing trade negotiations between the United States and China could hold the key to understanding Bitcoin’s role as a safe-haven asset. On May 11, crypto trader Daan Crypto highlighted an intriguing trend: Bitcoin’s resilience amid stock market turbulence in April. This performance has sparked a debate over whether Bitcoin is being used to sidestep tariffs or if its strength lies elsewhere.
Bitcoin’s Resilience Amid Market Volatility
April was a rollercoaster for traditional markets. As former President Donald Trump unveiled tariffs on “Liberation Day,” stock markets took a nosedive. Yet Bitcoin, the ever-volatile digital currency, outperformed expectations. After hitting a low of $75,000 on April 7, Bitcoin surged, closing the month 27% higher at around $95,000. This stark contrast with the declining S&P 500 and Nasdaq indices has investors scratching their heads. As explored in our recent coverage of Bitcoin’s price surge amid trade optimism, traders have been optimistic about the potential for a U.S.-China trade deal.
Some observers theorized that Bitcoin’s strength might be linked to countries using it to circumvent tariffs. But Daan Crypto suggests that if trade uncertainty was indeed the fuel for Bitcoin’s rally, a confirmed trade deal should, in theory, dampen its outperformance.
Anticipation Builds for Trade Deal Outcome
The buzz around Bitcoin’s recent performance coincided with the White House’s announcement on May 11 that US-China trade talks had made “substantial progress.” Although no deal has been inked yet, US Treasury Secretary Scott Bessent hinted at productive discussions, promising more details soon. This follows a pattern of optimism, which we detailed in our analysis of tariff deal progress.
In the crypto world, analysts are closely watching these developments. Jeff Mei, COO at BTSE, shared his insights with Cointelegraph: “We believe that institutional investors are less apprehensive about investing in Bitcoin and crypto as US-China trade talks come to a conclusion and the likelihood of rate cuts increases.” Mei’s comments underscore the potential for a trade deal to boost investor confidence and drive more capital into crypto markets.
Potential Impacts on Bitcoin and Beyond
Jupiter Zheng, a researcher at HashKey Capital, adds another layer to the conversation. He believes a US-China trade agreement could bring stability to global markets, prompting investors to explore alternative assets like Bitcoin. “Bitcoin could also see new highs as a result, particularly if the deal weakens the dollar or leads to renewed liquidity flows into emerging markets,” Zheng noted.
However, not everyone is convinced. Analyst Will Clemente expressed a more cautious view on social media platform X, suggesting that only a “real, tangible announcement” would sustain Bitcoin’s momentum. According to Clemente, the momentum is already beginning to stall, indicating a need for concrete action on the trade front.
Looking Ahead: Uncertainty and Opportunity
As the world awaits a definitive announcement from the trade talks, the potential ramifications for Bitcoin and the broader crypto market remain a hot topic. While some see a trade deal as a catalyst for growth, others underscore the unpredictability of Bitcoin’s market dynamics.
The situation raises a broader question: Can Bitcoin maintain its status as a safe-haven asset in the face of geopolitical shifts? As the narrative unfolds, investors and analysts alike are left pondering the implications of a trade deal that could redefine the landscape of global finance.
In the coming weeks, all eyes will be on the negotiations between the US and China. Whether Bitcoin will continue to defy expectations or follow a new trajectory remains to be seen. One thing is certain, though—this digital asset is not one to be underestimated.
Source
This article is based on: US-China trade deal could shed light on Bitcoin’s use case: Trader
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
