Trump Administration Claims Progress in US-China Trade Talks; Crypto Market Responds with Caution
By Aaron Feuerstein
May 12, 2025
In a notable development from the Trump administration, US Treasury Secretary Scott Bessent announced on Sunday that significant progress has been made in ongoing trade talks between the United States and China. This revelation follows a recently signed trade agreement with the United Kingdom, though critics cite a lack of substantive details in the administration’s claims, raising questions about the validity of these assertions.
Progress in Trade Talks
During a press conference, Bessent stated, “We will be giving details tomorrow, but I can tell you that the talks were productive.” He emphasized the desire for a resolution to the steep tariffs currently imposed on both sides: the U.S. has enacted a 145 percent tariff on Chinese imports, while China retaliated with a 125 percent levy on U.S. goods.
Despite the optimistic tone from the Trump administration, critics argue that the lack of solid details surrounding this potential deal is cause for skepticism. Advocates like Bhavik Lathia commented on social media, highlighting that “progress between the United States and China” does not equate to a formal trade agreement. Lathia noted the administration’s messaging mirrors that of the recent UK agreement, which some consider misleading, emphasizing that without tangible changes, economic hardships such as supply chain shortages and increased prices may persist.
In contrast, some reports indicate that a positive dialogue was echoed by the Chinese delegation, potentially signaling a more collaborative atmosphere than has been seen in previous encounters.
Crypto Market Reactions
With news of the trade talks stirring conversation, the cryptocurrency market has taken a cautious approach. Bitcoin, despite its volatility, has managed to maintain a price just above USD 104,000 (AUD 162,000), reflecting a minor gain of 0.06 percent over the previous day. However, major cryptocurrencies such as Ethereum, XRP, and Solana have seen declines in their valuations.
The overall market capitalization for cryptocurrencies currently stands at USD 3.3 trillion (AUD 5.13 trillion), with a 24-hour trading volume reported at USD 124.25 billion (AUD 193.36 billion). The Fear-and-Greed Index, a metric used to gauge market sentiment, has also shifted from neutral to a state of greed, moving from a score of 52 to 70 over the weekend.
Analyst Insights
Despite the general apprehension of the crypto markets, some analysts are interpreting Bitcoin’s resilience above USD 100,000 as more than mere speculation. Gadi Chait, Head of Investment at Xapo Bank, suggested that this surge indicates a deeper market shift driven by actual trading flows rather than excitement alone.
In a statement to Crypto News Australia, Chait shared, “This move above $100,000 should be viewed as more than mere euphoria, but rather as evidence of a flows-driven shift.” He further articulated that accumulating activity and record-breaking demand for Bitcoin exchange-traded funds (ETFs) are supporting this trend.
On the latest trading day, U.S. spot Bitcoin ETFs recorded an inflow of USD 321.4 million (AUD 500.5 million), holding a notable 5.59 percent of the total circulating Bitcoin supply, which is further adding to market confidence even amidst uncertainty regarding international trade relationships.
Conclusion
While the Trump administration’s claims of progress in US-China trade talks offer a glimmer of hope for easing economic tensions, the cryptocurrency market exhibits a blend of cautious optimism and skepticism. As traders and analysts closely monitor these developments, the future trajectory of both markets will depend significantly on the forthcoming details regarding the trade negotiations between the two economic powerhouses.
For ongoing updates, readers are encouraged to stay informed through reliable financial news sources.
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