Recent developments in US-China trade relations have spurred notable commentary from financial experts, particularly concerning the cryptocurrency market. A temporary agreement between the two economic giants to ease trade tensions has prompted varied analyses on its short-term and long-term implications for digital assets.
Temporary Truce Sparks Market Optimism
Negotiations between the United States and China resulted in a mutual accord to significantly lower tariffs for a 90-day period. This move was met with positive reactions across financial markets, including a noticeable upswing in cryptocurrencies. The temporary easing of trade friction appeared to boost investor confidence, leading to gains in both traditional equities and digital assets.
Arthur Hayes Advocates Buying Amidst Skepticism
In response to this development, Arthur Hayes, the co-founder of the BitMEX exchange, issued a strong call to investors: “buy everything”. This bullish short-term stance comes despite his previously articulated views on the inevitable economic separation between the US and China. Hayes has consistently argued that the ongoing trade conflict would ultimately lead to the formation of distinct American and Chinese economic spheres.
However, Hayes suggests that the primary driver for this eventual “divorce” will not be tariffs, but rather capital controls. He pointed to legislative actions like Texas’s SB 17 bill, which aims to restrict land purchases within the state by entities linked to China, Russia, and North Korea, as evidence supporting his view on increasing capital flow restrictions. This indicates that while he sees a short-term buying opportunity, his long-term outlook on US-China economic integration remains pessimistic.
Broader Implications for Crypto
The temporary tariff reduction is seen by some analysts as beneficial for risk assets like cryptocurrencies. Dr. Kirill Kretov, Senior Automation Expert at CoinPanel, noted that easing trade tensions helps alleviate inflationary pressures and improves global liquidity conditions. “Both of these factors are generally favourable for Bitcoin and other cryptocurrencies,” Kretov explained in comments shared with The Block. This improved liquidity environment can make investors more willing to allocate capital to assets perceived as higher risk, including digital currencies.
Following the announcement of the US-China agreement, Bitcoin saw positive movement, and several altcoins experienced notable gains. Among them, assets like XRP, Tron (TRX), and Dogecoin (DOGE) registered increases, reflecting a broader positive sentiment across the crypto space driven by the temporary thaw in trade relations.
Chris brings over six years of hands-on experience in cryptocurrency, bitcoin, business, and finance journalism. He’s known for clear, accurate reporting and insightful analysis that helps readers stay informed in fast-moving markets. When he’s off the clock, Chris enjoys researching emerging blockchain projects and mentoring new writers.