US-China Trade Negotiations in London: Potential Impact on Cryptocurrency Market
US and Chinese officials will meet in London on Monday, June 9, 2025, to discuss the future of bilateral trade. The US delegation is led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer. China is sending Vice Premier Ha Lap Phong. This event follows a "very good" call between President Donald Trump and President Xi Jinping—a new sign of potential de-escalation.
The trade war began when the US imposed tariffs up to 125% on Chinese goods. China retaliated by raising tariffs on US goods. At its peak, tariff rates escalated to 145%, causing disruption to the entire supply chain and global financial markets. However, a temporary agreement in Switzerland in May helped the US reduce tariffs to 30%, while China reduced them to 10%. Nevertheless, risks of further escalation remain present.
The cryptocurrency market is particularly sensitive to such geopolitical news. In previous fluctuations, Bitcoin and other altcoins were seen as safe havens against systemic risks. If negotiations yield a breakthrough, capital flows might return to traditional markets, causing significant cryptocurrency price volatility. Conversely, continued instability could prompt investment capital to rapidly shift into decentralized assets like Bitcoin, ETH—as they remain detached from national legal and monetary policy influences.
The shift towards cryptocurrency is further reinforced by Santiment data: Ethereum wallet holdings reached 148.38 million, Bitcoin at 55.39 million, and Dogecoin at 7.79 million. The expanding user network indicates investors increasingly seek hedging assets and profit potential beyond traditional boundaries.
The current international economic landscape continuously reinforces cryptocurrency investment sentiment. Clearly, each turning point in US-China trade relations can instantly impact global cryptocurrency supply and demand, from liquidity, holding rates, to accumulation and liquidation behaviors of decentralized assets. Investors cannot remain on the sidelines, maintaining both optimistic and cautious attitudes.
