QCP Insights: Trade Truce Revives Crypto Market Appetite With Gains for BTC and ETH

Markets rallied after the U.S. and China agreed to reduce tariffs, with crypto benefiting from a broader risk-on mood, with bitcoin and ether gaining momentum.

Crypto Sentiment Lifts as U.S. and China Tariff Rollback Sparks Rally

A surprise weekend breakthrough in U.S.-China trade relations has breathed new life into global markets, and crypto is no exception. As both nations agreed to drastically scale back tariffs, with U.S. duties on Chinese goods dropping from 145% to 30%, and China’s tariffs on U.S. imports falling from 125% to 10%, investor sentiment flipped sharply risk-on.

QCP’s latest insights showed that U.S. equities opened 3% higher, gold fell nearly 3%, and the VIX slid to 18. Crypto volatility followed suit, with bitcoin front-end implied vols compressing by more than five points. BTC and ETH initially dipped on the news but have since found stability near $103K and $2,400, respectively.

However, while bitcoin dominance has edged below 63%, suggesting rotation under the surface, BTC remains directionally conflicted, torn between its role as digital gold and a speculative risk asset. Its near-term outlook appears range-bound, influenced by macro narratives and muted derivatives hedging activity.

Ether, on the other hand, is showing clearer signs of momentum. With neutral funding, a lack of frothy positioning, and renewed demand for longer-dated options, ETH’s push above $2,400 aligns with its recent Pectra upgrade rollout. According to QCP’s insights, ETH could be positioning itself as the next major allocation play amid easing global tensions and improving market structure.