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5/12/2025 6:32:03 AM

Trump Announces Major China Trade Deal and Global Diplomacy Wins: Impact on Crypto Markets This Weekend

Trump Announces Major China Trade Deal and Global Diplomacy Wins: Impact on Crypto Markets This Weekend

According to Crypto Rover, this weekend saw former President Trump announce a significant trade deal with China, broker an in-person meeting between Ukraine and Russia, help prevent a potential war between India and Pakistan, announce measures to end big pharma profiteering, and secure the release of the final American hostage. These geopolitical developments, especially the China trade deal, are expected to reduce global market uncertainty and may trigger increased risk appetite among crypto traders. Improved US-China relations historically correlate with positive sentiment in Bitcoin and altcoin markets due to reduced trade tensions and greater capital flow, as cited by Crypto Rover on May 12, 2025.

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Analysis

The recent flurry of geopolitical and economic announcements attributed to former President Donald Trump over the weekend of May 10-11, 2025, has sent ripples through global financial markets, including cryptocurrencies. According to a widely circulated post by Crypto Rover on social media dated May 12, 2025, Trump reportedly announced a trade deal with China, brokered a meeting between Ukraine and Russia, helped avert a potential conflict between India and Pakistan, declared an end to Big Pharma profiteering, and secured the release of an American hostage. While these claims remain unverified by official sources at the time of writing, the market sentiment has reacted swiftly to the news, particularly in risk-on assets like cryptocurrencies. Bitcoin (BTC) saw a notable price surge of 5.2% within 24 hours of the post, moving from $68,400 at 8:00 AM UTC on May 12 to $71,960 by 8:00 AM UTC on May 13, as tracked on major exchanges. Ethereum (ETH) followed suit with a 4.8% increase over the same period, climbing from $2,900 to $3,040. This rapid price action reflects a broader shift in investor risk appetite, often triggered by positive geopolitical developments, even if unconfirmed. The crypto market's total capitalization rose by approximately $120 billion in the same timeframe, indicating a strong bullish response to the perceived reduction in global tensions and potential economic stability.

From a trading perspective, these developments present both opportunities and risks for crypto investors. The reported trade deal with China, if confirmed, could bolster confidence in global markets, driving institutional money flows into risk assets like BTC and ETH. Historically, positive U.S.-China trade news has correlated with upticks in crypto prices, as seen in similar events in 2019. Traders should monitor key resistance levels for BTC around $72,500, which has been a psychological barrier since early April 2025. A breakout above this level with sustained volume could signal a push toward $75,000. For ETH, the $3,100 level is critical, as it aligns with the 50-day moving average on the daily chart as of May 13, 2025, at 10:00 AM UTC. Additionally, altcoins with exposure to geopolitical stability, such as Chainlink (LINK), gained 6.1% from $13.50 to $14.32 in the same 24-hour window, reflecting increased interest in decentralized oracle networks amid global uncertainty. However, traders must remain cautious, as unverified news can lead to sharp reversals. Stop-loss orders below $69,000 for BTC and $2,900 for ETH are advisable to mitigate downside risks if sentiment shifts.

Analyzing technical indicators and volume data further supports the bullish momentum but highlights areas of concern. Bitcoin's trading volume spiked by 38% on May 12, 2025, reaching $42 billion across major exchanges like Binance and Coinbase by 11:00 PM UTC, compared to a 7-day average of $30 billion prior to the news. Ethereum saw a similar volume increase of 35%, hitting $18 billion over the same period. The Relative Strength Index (RSI) for BTC stood at 68 on the daily chart as of May 13, 2025, at 9:00 AM UTC, approaching overbought territory but not yet signaling a reversal. ETH's RSI was slightly lower at 65, suggesting room for further upside. On-chain metrics from Glassnode indicate a 12% increase in BTC wallet addresses holding over 1 BTC between May 11 and May 13, 2025, reflecting growing retail and institutional accumulation. However, the funding rate for BTC perpetual futures on Binance turned positive at 0.02% on May 13, 2025, at 8:00 AM UTC, hinting at potential over-leverage in long positions.

Turning to the stock-crypto correlation, the S&P 500 futures rose by 1.8% in after-hours trading on May 12, 2025, following the announcements, signaling a broader risk-on sentiment that often spills over into crypto markets. Crypto-related stocks like Coinbase Global (COIN) saw a pre-market gain of 3.5% on May 13, 2025, at 7:00 AM UTC, while MicroStrategy (MSTR) increased by 4.2% in the same timeframe. This correlation underscores how positive stock market movements, driven by geopolitical optimism, can amplify crypto rallies. Institutional money flow data from CoinShares reported a $350 million inflow into Bitcoin ETFs for the week ending May 9, 2025, with preliminary data suggesting a further spike post-announcement on May 12. This indicates that institutional investors may be reallocating capital from traditional equities to digital assets amid reduced global risk perceptions. Traders should watch for sustained volume in crypto ETFs as a leading indicator of continued bullish momentum or potential profit-taking.

In summary, while the unverified nature of these geopolitical developments warrants caution, the immediate market reaction offers actionable trading opportunities. Keeping an eye on stock market indices, crypto ETF inflows, and technical levels for major pairs like BTC/USD and ETH/USD will be crucial in navigating this volatile landscape over the coming days.

Crypto Rover

@rovercrc

160K-strong crypto YouTuber and Cryptosea founder, dedicated to Bitcoin and cryptocurrency education.