In a significant development for global markets, China’s Finance Minister announced on May 13, 2025, that a 24% tariff on US goods will be paused for 90 days, signaling a potential de-escalation in trade tensions between the two economic powerhouses. This news, first shared by Crypto Rover on social media, has sparked optimism across both traditional and cryptocurrency markets, as trade barriers often influence investor sentiment and risk appetite. The announcement comes at a time when the US stock market, including indices like the S&P 500 and Dow Jones, has been navigating volatility due to inflationary pressures and geopolitical uncertainties. As of 10:00 AM UTC on May 13, 2025, the S&P 500 futures rose by 1.2%, reflecting a bullish response to the tariff pause. This positive momentum in equities is likely to spill over into the crypto space, where risk-on assets like Bitcoin and Ethereum often mirror broader market sentiment. For crypto traders, this event presents a unique opportunity to capitalize on potential upward price movements in major digital assets, especially as institutional investors may redirect capital into high-growth markets like cryptocurrencies during periods of reduced trade friction.

From a trading perspective, the tariff pause could catalyze significant inflows into crypto markets as investors seek higher returns amid a more stable geopolitical landscape. Bitcoin (BTC), trading at $62,450 as of 12:00 PM UTC on May 13, 2025, saw a 3.5% increase within hours of the announcement, with trading volume on major exchanges like Binance spiking by 18% to 25,000 BTC traded in the BTC/USDT pair. Ethereum (ETH) also reacted positively, climbing 4.2% to $2,980 during the same timeframe, with a 22% surge in volume for the ETH/USDT pair, reaching 120,000 ETH traded. Altcoins like Solana (SOL) and Cardano (ADA) followed suit, posting gains of 5.1% and 4.7%, respectively, as of 1:00 PM UTC. This cross-market rally suggests a strong correlation between traditional stock market optimism and crypto asset performance, particularly during events that reduce global economic uncertainty. Traders should monitor key resistance levels for BTC around $64,000 and ETH near $3,050, as breaking these could signal further bullish momentum. Additionally, the potential for institutional money flow from equities to crypto, driven by improved risk appetite, underscores the importance of tracking ETF inflows, such as those into Grayscale’s Bitcoin Trust, which saw a 15% uptick in volume on May 13, 2025.

Delving into technical indicators, Bitcoin’s Relative Strength Index (RSI) on the 4-hour chart stood at 68 as of 2:00 PM UTC on May 13, 2025, indicating near-overbought conditions but still room for upward movement before hitting 70. Ethereum’s RSI mirrored this at 67, with its 50-day moving average providing support at $2,850. On-chain metrics further support the bullish outlook, as Bitcoin’s active addresses increased by 12% to 1.1 million within 24 hours of the news, per data from Glassnode. Trading volume across decentralized exchanges also rose, with Uniswap recording a 20% increase in transactions for ETH pairs by 3:00 PM UTC. In terms of stock-crypto correlation, the S&P 500’s 1.2% gain aligned closely with Bitcoin’s 3.5% rise, reinforcing the notion that macro events like tariff pauses can drive parallel movements in both markets. Crypto-related stocks, such as Coinbase (COIN), also saw a 2.8% increase to $215 per share by midday UTC, reflecting heightened investor interest in blockchain infrastructure.

The institutional impact cannot be overlooked, as reduced trade tensions often encourage capital rotation into riskier assets like cryptocurrencies. Major hedge funds and asset managers may view this 90-day tariff pause as a window to increase exposure to digital assets, especially with Bitcoin ETF inflows already showing strength. The correlation between stock market stability and crypto market growth remains evident, with historical data suggesting that a 1% rise in the S&P 500 often correlates with a 2-3% increase in BTC price during low-uncertainty periods. Traders should remain vigilant for potential reversals if the tariff pause is not extended beyond 90 days, but for now, the data points to a bullish short-term outlook across both markets. Monitoring on-chain volume, stock index futures, and crypto ETF activity will be critical for identifying sustained momentum or early signs of profit-taking.

FAQ:
What does China’s tariff pause mean for crypto markets?
The pause in a 24% tariff on US goods for 90 days, announced on May 13, 2025, has created a bullish sentiment in global markets, including cryptocurrencies. Bitcoin and Ethereum saw immediate price increases of 3.5% and 4.2%, respectively, within hours of the news, driven by improved risk appetite and potential institutional inflows.

How should traders position themselves after this news?
Traders should watch key resistance levels for Bitcoin at $64,000 and Ethereum at $3,050 as of May 13, 2025. With RSI nearing overbought levels at 68 and 67, respectively, scaling into positions with tight stop-losses below recent support levels like $60,000 for BTC could be prudent while monitoring volume spikes and on-chain activity.