Bitcoin approaches all-time high on tariff news, but headwinds remain

US equities and cryptocurrencies rallied Monday, following news that Chinese and American officials agreed to temporarily slash tariffs while details of a comprehensive deal are ironed out. The S&P 500 and Nasdaq Composite indexes are both now trading above their April 2 levels, reversing the “Liberation Day” selloff that plagued markets for weeks. Bitcoin surpassed $105,000 early Monday morning, hitting its highest price since January when the crypto reached a new all time high above $109,000. Ether also rallied Monday, gaining as much as 4.6% in the early hours of the morning. After meeting in Geneva over the weekend, China and the US announced in a joint statement that tariffs on Chinese imports to the US will fall from 145% to 30%. China will lower levies on US imports from 125% to 10%. These changes will be in effect for 90 days. Treasury Secretary Scott Bessent said Monday during an interview with CNBC that the goal for the US is to decouple from China when it comes to “strategic necessities.” “We do not want a generalized decoupling from China,” he said. The outcome is positive, especially after reports over the weekend that the two days of meetings were especially tense. But it’s important to note that this is a ceasefire, not a deal, Noelle Acheson, author of the Crypto is Macro Now newsletter, said in a note Monday. That being said, analysts warn that until a long-term agreement is in place, volatility is likely to remain. “I do believe this could be a hollow rebound, as it is based on sentiment and the political moves of a single man,” James Toledano, chief operating officer at Unity Wallet said of the rally in cryptocurrencies. “Anyone who is serious about crypto would prefer that fundamentals are the driving force,” he added. The next breakout for crypto will not come until regulatory clarity is reached in the US, Toledano said, and for now, policy remains in political limbo. Senators last week failed to advance the GENIUS Act, a stablecoin bill that once touted robust bipartisan support, during a key procedural vote. While the bill could still pass, several Democrats, including two of the bill’s original co-sponsors, have said the legislation needs more work. Get the news in your inbox. Explore Blockworks newsletters: Source: https://blockworks.co/news/bitcoin-approaches-all-time-high