Trade War on Pause, Markets on Fire

US-China tariff truce ignites global rally — Bitcoin Hits $105K

The US has cut tariffs on Chinese goods from 145% to 30% for 90 days.

A 90-day pause in the world’s biggest trade war just pumped new life into global markets — and Bitcoin surged right alongside.

In a surprise agreement brokered in Geneva, the U.S. and China have temporarily slashed tariffs for the next three months. The U.S. cut duties on Chinese goods from 145% to 30%, while China reduced its tariffs on American imports from 125% to 10%. The deal, though temporary, was enough to reverse sentiment across risk markets.

Bitcoin briefly broke above $105,000 for the first time in three months. Ethereum, XRP, Solana, and other top coins also rallied, along with U.S. stock futures — showing renewed risk appetite after weeks of uncertainty.

“This isn’t about fixing the system. It’s about stopping the bleeding,” said U.S. Treasury Secretary Scott Bessent, following the closed-door negotiations.

Key takeaways:

• The U.S. reduced tariffs on Chinese goods from 145% to 30%

• China cut tariffs on U.S. imports from 125% to 10%

• The agreement is valid for 90 days and seen as a “tactical pause,” not a resolution

• U.S. 10% base tariffs on other nations remain in place

• Macro traders now look ahead to U.S. CPI and PPI reports later this week

Traditional safe-haven assets like gold and government bonds saw heavy selling, while the U.S. dollar and equities gained ground. Treasury yields spiked, and the Japanese yen weakened — all pointing to a swift rotation back into risk.

While this deal is short-term, it’s strategically timed. For crypto, which has been range-bound, it marks a sharp sentiment shift. A temporary tariff truce may not be a long-term fix — but it might just be the macro breather the markets needed.

📜 Regulation Watch: 

Why a new Draft of the GENIUS Act could be bad for Tether

Tether may be operating offshore — but a new draft of the GENIUS Stablecoin Act could still bring it under U.S. regulatory scrutiny..

A revised version of the U.S. stablecoin bill proposes that all stablecoin issuers, regardless of where they’re registered, would fall under U.S. jurisdiction if their tokens are used within the country. That includes Tether, Inc., currently headquartered in the British Virgin Islands.

This is a significant shift. The bill would override the common workaround of “issuing abroad to avoid local rules,” targeting stablecoins by utility and circulation — not geography.

Why it matters:

• Tether would fall under U.S. jurisdiction despite being registered offshore

• States could apply their own regulatory protections to stablecoins used locally

• Stablecoins would be classified as payment tools, not securities or commodities

• The bill introduces an 18-month transition period, with a pathway for issuers to obtain banking licenses
  

While the legislation is still under review, it sends a clear signal: the U.S. wants legal control over any stablecoin that touches its markets. That puts Tether — the most widely used stablecoin globally — in the crosshairs.

So far, Tether appears unbothered. It’s planning a U.S.-domiciled token, added $14B in supply YTD, and continues to post strong profits from its bond portfolio. But the bill could impact U.S.-based listings unless Tether complies with the new regime.

If passed, the GENIUS Act won’t just reshape stablecoin rules — it could force the largest player in the game to finally play by U.S. terms.

📊 Market Watch: 

Bitcoin is up — But ETF inflows tell another story

Bitcoin may be climbing, but investor flows into Bitcoin ETFs just posted their sharpest weekly drop in nearly a month.

For the week ending May 8, spot Bitcoin ETFs recorded $599.59 million in new inflows, a 67% drop from the $1.81 billion logged the week prior. It’s the second consecutive weekly decline following the April 25 peak of $3.06 billion — even as Bitcoin’s price continues to rebound.

Daily activity remains healthy, with $321.46 million in inflows reported on May 9, but the weekly slowdown points to investor caution amid high prices.

Key takeaways:

• Weekly inflows fell to $599.59M, down from $1.81B the previous week

• Total ETF assets rose to $121.19B, now representing nearly 6% of Bitcoin’s market cap

• Trading volume declined to $9.27B, from $13.23B

• BlackRock’s IBIT leads with $64.45B in assets, adding $356M in daily inflows on May 9

• Grayscale’s GBTC saw $65.16M in outflows, continuing its exit trend

Despite the lower inflows, overall ETF holdings are growing — a reflection of price appreciation and long-term positioning. Around 34% of all Bitcoin ETF assets are from net new money, while the rest reflects Bitcoin’s rising value.

With upcoming U.S. inflation data (CPI, PPI) on deck, investors appear to be watching the macro landscape before making their next big move.

🐥 Tweet of the day

Strategy acquires Bitcoin — again.

Market-moving headlines 🔥

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