Crypto on Edge: U.S.–China Trade Talks Could Shake-Up the Market
As U.S. and Chinese officials meet in London today to resume high-level trade negotiations, global cryptocurrency markets are bracing for potential turbulence.
The June 9 talks mark the most significant diplomatic engagement between the two nations since a temporary truce eased tensions from earlier this year’s tariff clashes. Investors are watching closely, as the outcome could influence both traditional and digital markets, particularly Bitcoin and Ethereum.
Leading the U.S. delegation are Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer. They are meeting Chinese Vice Premier He Lifeng in what is being seen as a pivotal effort to stabilize trade relations. The meeting follows a reported “very good” phone call between President Donald Trump and Chinese President Xi Jinping.
Earlier this year, the U.S. imposed a 125% tariff on Chinese goods, prompting swift retaliatory tariffs from Beijing. Although both sides agreed to a temporary rollback, lowering tariffs to 30% and 10%—today’s meeting will determine whether a longer-term resolution is possible.
Cryptocurrencies are closely tied to market sentiment, especially during geopolitical unrest. Digital assets like Bitcoin and Ethereum have long been viewed as hedges against fiat instability and global economic risk.
Today, with more than 55 million Bitcoin holders and over 148 million Ethereum wallets, the crypto space is highly sensitive to global developments. If the talks collapse, analysts expect a surge in crypto investment as traders seek safe-haven alternatives. Conversely, a successful agreement could ease economic concerns and reduce short-term demand for crypto as a hedge.
Altcoins such as Dogecoin could also experience ripple effects, depending on how investors react to the trade news.
With trade and technology at the center of U.S.–China relations, today’s dialogue could help define the financial outlook for the rest of 2025 and shape crypto market behavior for weeks to come.