Bitcoin’s price climbed to a brief high of $119,000 following reports of a 90-day extension to the U.S.-China tariff truce, signaling a shift in investor sentiment toward risk assets. The global crypto market cap approached $4 trillion as traders reacted to the news, which emerged from negotiations in Stockholm and was corroborated by multiple outlets [1]. The truce, if confirmed, would delay the implementation of contentious tariffs until August 12, providing temporary relief to markets bracing for trade-related volatility since the Trump administration’s protectionist policies [2].
Key figures such as U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng played central roles in the talks. He Lifeng stated that the negotiations could strengthen economic ties, highlighting the two nations’ ongoing efforts to manage their complex trade relationship [3]. The 90-day extension reflects a strategic focus on economic stability over immediate concessions, a pattern both countries have previously adopted to navigate disputes. Analysts noted that such geopolitical agreements often reduce short-term uncertainty, prompting capital to flow from safe-haven assets like gold into riskier investments such as cryptocurrencies and equities [4].
The cryptocurrency’s 2% gain aligned with broader market optimism, though experts caution that Bitcoin’s volatility could lead to rapid reversals if tensions resurface. The truce has reinforced Bitcoin’s reputation as a barometer for global economic uncertainty, with historical precedents showing that tariff negotiations often drive short-term price increases in risk assets [5]. However, the August 12 deadline remains a critical benchmark, as negotiators must resolve lingering disputes over tariffs, technology, and supply chains [6].
Market observers emphasized the interconnectedness of trade policies and crypto valuations, with institutional investors’ resource allocation expected to influence long-term trends. The outcome of the Stockholm talks and broader geopolitical developments—including the EU’s recent trade agreements with the U.S.—will shape investor confidence in the coming months [7]. For now, the truce has shifted sentiment toward cautious optimism, underscoring the delicate balance between geopolitical risk mitigation and market stability.
Source: [1] Coingape, [https://coingape.com/bitcoin-jumps-amid-reports-of-90-day-us-china-tariff-truce/](https://coingape.com/bitcoin-jumps-amid-reports-of-90-day-us-china-tariff-truce/)
[2] Bloomberg, [https://www.bloomberg.com/news/articles/2025-07-27/us-and-china-are-expected-to-extend-trade-truce-by-90-days-scmp-says](https://www.bloomberg.com/news/articles/2025-07-27/us-and-china-are-expected-to-extend-trade-truce-by-90-days-scmp-says)
[3] The CCPress, [https://coinmarketcap.com/community/articles/68866ef83b9f6678f00e4dc1/](https://coinmarketcap.com/community/articles/68866ef83b9f6678f00e4dc1/)
[4] TipRanks, [https://www.tipranks.com/news/the-fly/u-s-china-discuss-tariffs-in-effort-to-extend-truce-reuters-says-thefly](https://www.tipranks.com/news/the-fly/u-s-china-discuss-tariffs-in-effort-to-extend-truce-reuters-says-thefly)
[5] Financial Express, [https://www.financialexpress.com/world-news/this-marks-the-third-us-china-trade-meeting-in-europe-in-as-many-months-with-beijing-arriving-with-an-upper-hand-by-its-strategic-hold-over-critical-minerals/3928255/](https://www.financialexpress.com/world-news/this-marks-the-third-us-china-trade-meeting-in-europe-in-as-many-months-with-beijing-arriving-with-an-upper-hand-by-its-strategic-hold-over-critical-minerals/3928255/)
[6] Economic Times, [https://m.economictimes.com/news/international/business/china-us-to-extend-tariff-pause-at-sweden-talks-by-another-90-days-scmp-reports/articleshow/122937202.cms](https://m.economictimes.com/news/international/business/china-us-to-extend-tariff-pause-at-sweden-talks-by-another-90-days-scmp-reports/articleshow/122937202.cms)
[7] Investor’s Business Daily, [https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-trump-eu-trade-deal-tesla-robotaxis/](https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-trump-eu-trade-deal-tesla-robotaxis/)
