According to The Kobeissi Letter, the S&P 500 turned negative after President Trump proposed imposing 80% tariffs on Chinese goods. China has issued a strong rebuttal, stating its firm opposition to the US's use of reciprocal tariffs. The announcement signals that significant trade barriers could persist long-term, raising concerns about global market volatility. For crypto traders, heightened uncertainty in traditional markets often drives increased interest and volatility in digital assets as investors seek hedges and alternative opportunities. Source: The Kobeissi Letter (@KobeissiLetter, May 9, 2025).

According to Brad Freeman (@StockMarketNerd), renewed signals about the start of China trade talks have surfaced again, this time with more credibility compared to previous weeks. Historically, news about China-US trade negotiations has triggered notable volatility across global markets, including cryptocurrencies, as traders anticipate shifts in risk sentiment and capital flows (source: @StockMarketNerd, May 6, 2025). For crypto traders, potential progress in these talks could result in increased inflows to risk assets like Bitcoin and Ethereum, while setbacks might cause short-term pullbacks. Monitoring official announcements and market reactions is crucial for timing entries and managing risk when trading crypto pairs closely correlated with macroeconomic news.