Bitcoin News Update: U.S.-China Trade Pause Strengthens Relations as Cryptocurrency Markets Remain Stable

China-U.S. Economic Cooperation Accelerates, Crypto Markets Unaffected

The United States and China have made notable progress in reducing trade friction, as Presidents Donald Trump and Xi Jinping revealed a one-year trade pact featuring lower tariffs and promises to maintain steady rare earth exports. The agreement, reached during their discussions in South Korea, reduced U.S. tariffs on Chinese imports from 57% to 47%. In return, China agreed to stop retaliatory tariffs and limit fentanyl shipments. Trump also pointed to advancements in resolving rare earth disputes, which are vital for advanced manufacturing, as noted in a

. The White House described the deal as a "broad framework that supports U.S. industries," with the intention of easing global supply chain pressures and bringing more stability to markets, according to a .

Despite this diplomatic progress, the cryptocurrency sector remained largely unmoved.

, which briefly fell below $108,000 after the Federal Reserve lowered interest rates, recovered slightly but hovered near $110,785. Experts said the subdued reaction was due to the market already factoring in both the trade news and the Fed’s decision, as reported by CryptoNews Australia. Blockchain data showed that long-term holders were increasing their selling activity, with large investors moving billions in Bitcoin to exchanges, indicating a change in market sentiment, according to a . Meanwhile, MicroStrategy founder Michael Saylor continued to amass Bitcoin, suggesting a possible 13th acquisition as his company’s holdings exceeded $71 billion, as mentioned by .

At the same time, the U.S. Senate is moving forward with legislation to clarify digital asset regulation. The forthcoming Crypto Market Structure Bill would grant the Commodity Futures Trading Commission (CFTC) authority over spot and digital commodity markets, while the Securities and Exchange Commission (SEC) would oversee securities. The bill also updates rules for stablecoins and decentralized finance (DeFi), reflecting bipartisan efforts to establish clear legal standards for the sector, according to

. Lawmakers from both sides have stressed the importance of regulatory certainty, with Coinbase CEO Brian Armstrong stating that 90% of the bill’s concerns have been addressed, as reported by .

In addition to the trade pact, the U.S. and China are deepening broader economic ties. China and South Korea signed a $49.24 billion currency swap deal to help stabilize financial markets and lessen dependence on the U.S. dollar. This agreement, one of six MOUs signed during Xi’s trip to Seoul, also seeks to boost trade and cooperation in green technology, according to

. China also introduced the idea of a World Artificial Intelligence Cooperation Organization at the APEC summit, advocating for AI to be regarded as a "public good," as reported by .

While these trade and regulatory advances point to closer economic alignment, the crypto market remains largely unaffected. The U.S. Senate’s push for structured oversight stands in contrast to China’s ongoing crypto bans, though Hong Kong’s rise as a regulated crypto center brings hope for initiatives like

. Still, analysts note that major rallies for China-linked tokens would require significant policy shifts, such as full crypto legalization in Beijing, according to a .

The economic partnership between the U.S. and China is now being reinforced by military dialogue, with defense leaders agreeing to reduce tensions and avoid conflict. This comes after Trump’s statement that working with China could help restore American greatness, as reported by

. Collectively, these developments mark a shift in U.S.-China relations, emphasizing stability and shared economic progress over previous rivalry.