Crypto Markets Little Changed After US, China Announce Trade Deal

The S&P 500 index of US stocks rose 0.5% to 6,174 as at 15:00 UTC on Friday, surpassing the last all-time high of 19 Feb. 

However, major cryptocurrencies dipped modestly, with Bitcoin dropping 0.1%, while Ethereum and Tether both saw slight declines in the same range. XRP slid -1.7% by afternoon trading.

Tariffs

Following President Trump’s sweeping tariff announcement on 2 April—dubbed “Liberation Day”—the S&P 500 tumbled sharply beneath 5,000. Bitcoin also saw a sharp decline in the aftermath, plunging more than 11% to a six-month low of $75,004.68 by 9 April, as investors reacted to tariff-related developments.

Throughout the initial months of his second term, President Trump has relitigated the trade status between the US and China, sparking a series of tit-for-tat tariffs between the world’s largest economies. 

Geneva negotiations

Following negotiations in Geneva in May, Washington and Beijing agreed to temporarily ease the steep retaliatory tariffs they had imposed on each other’s goods. However, it was unclear when the two sides would reach a comprehensive agreement.

China currently refines 90% of the world’s rare-earth minerals which are vital in the production of electric vehicles, aerospace systems, semiconductors, and military equipment. They have become a flashpoint in the U.S.-China trade dispute given their geostrategic importance. This week’s accord may therefore represent a significant step towards trade normalization. 

Rare earths

“They’re going to deliver rare earths to us,” U.S. Commerce Secretary Howard Lutnick told Bloomberg. “And once they do that, we’ll take down our countermeasures.”

China’s commerce ministry confirmed Friday that both sides had finalized details on the Geneva framework. While the ministry did not mention rare earths specifically, it noted that China would approve export applications “in accordance with the law.”

China’s Shanghai Composite Index dropped 0.7% on Friday, while the Shenzhen Component Index rose 0.3%, as investors in Chinese markets also interpreted domestic industrial data. 

Iran

In a further sign that geopolitical tensions are cooling, Israel and Iran have so far refrained from direct attacks following a ceasefire agreement. The US has also not directly responded to the most recent Iranian missile salvo against its forces positioned at Al-Udeid Air Base in Qatar. 

While this pause offers a brief reprieve, the humanitarian situation in Gaza remains dire, with conditions on the ground continuing to deteriorate as Israeli forces press their assault.