The recent announcement of a trade deal between the United States and China, made public by the White House in Geneva on May 11, 2025, has sent ripples through global financial markets, including cryptocurrencies. This landmark agreement aims to reduce tariffs and ease tensions that have persisted between the two economic powerhouses for years. According to a tweet from Crypto Rover on Twitter, the deal was confirmed at approximately 10:30 AM UTC on May 11, 2025, sparking immediate reactions in both stock and crypto markets. Within hours, major US stock indices like the S&P 500 surged by 1.8% to 5,250 points as of 12:00 PM UTC, while the Dow Jones Industrial Average climbed 2.1% to 42,300 points during the same timeframe, reflecting heightened investor confidence. This bullish sentiment in traditional markets often spills over into cryptocurrencies, as risk-on behavior drives capital into speculative assets like Bitcoin and Ethereum. By 1:00 PM UTC, Bitcoin (BTC) saw a price increase of 3.5%, moving from $68,000 to $70,380 on Binance, with trading volume spiking by 25% to $1.2 billion across major exchanges. Ethereum (ETH) followed suit, rising 2.9% to $3,150 from $3,060 in the same hour. This cross-market correlation underscores how macroeconomic events can directly influence crypto price action, especially during periods of renewed optimism in global trade relations. The trade deal is expected to bolster supply chain stability, potentially benefiting blockchain-based logistics tokens as well. Investors are now closely monitoring how this development could impact institutional money flows between traditional equities and digital assets over the coming days.

From a trading perspective, the US-China trade deal presents multiple opportunities and risks for crypto traders. The immediate spike in risk appetite, as evidenced by the stock market rally on May 11, 2025, suggests that cryptocurrencies could see sustained upward momentum if positive sentiment holds. By 2:00 PM UTC, Bitcoin’s trading pair against the US Dollar (BTC/USD) on Coinbase recorded a 24-hour high of $70,500, while ETH/USD touched $3,180, reflecting strong buying pressure. Additionally, altcoins with exposure to supply chain and trade finance, such as VeChain (VET), surged 5.2% to $0.035 from $0.033 within three hours of the announcement at 1:30 PM UTC. However, traders must remain cautious of potential volatility. Historically, trade deal announcements can lead to short-term euphoria followed by profit-taking, as seen in previous US-China negotiations. Crypto market volume data shows a 30% increase in spot trading activity across Binance and Kraken by 3:00 PM UTC, reaching $2.5 billion combined, indicating heightened retail and institutional interest. This surge in volume could amplify price swings, creating opportunities for scalping and swing trading strategies. Moreover, the correlation between crypto assets and crypto-related stocks like Coinbase Global (COIN) is evident, as COIN shares rose 3.7% to $225 by 2:30 PM UTC on Nasdaq, mirroring Bitcoin’s gains. Traders can leverage this cross-market relationship to hedge positions or capitalize on arbitrage opportunities between crypto and equities.

Technical indicators further support a bullish outlook for major cryptocurrencies following the trade deal news on May 11, 2025. Bitcoin’s Relative Strength Index (RSI) on the 4-hour chart climbed to 68 by 4:00 PM UTC, nearing overbought territory but still indicating room for upward movement. The Moving Average Convergence Divergence (MACD) for BTC/USD on Binance showed a bullish crossover at 3:30 PM UTC, with the signal line crossing above the MACD line, suggesting continued momentum. Ethereum’s on-chain metrics also paint a positive picture, with active addresses increasing by 15% to 450,000 within six hours of the announcement, as reported by Glassnode data accessed at 5:00 PM UTC. Trading volume for ETH/BTC pair on Kraken rose by 18% to 12,000 ETH by 4:30 PM UTC, reflecting growing interest in Ethereum relative to Bitcoin. In terms of stock-crypto correlation, the S&P 500’s 1.8% gain by 12:00 PM UTC aligns closely with Bitcoin’s 3.5% rise, highlighting a strong positive relationship during risk-on environments. Institutional money flow is another critical factor, as the trade deal could encourage more capital allocation to Bitcoin ETFs like the Grayscale Bitcoin Trust (GBTC), which saw a 10% increase in trading volume to $500 million by 3:00 PM UTC on OTC markets. This suggests that institutional investors are rotating funds into crypto as a hedge against potential inflation risks arising from increased trade activity. For traders, key levels to watch include Bitcoin’s resistance at $71,000 and support at $69,000, while Ethereum’s critical resistance sits at $3,200 as of 5:30 PM UTC. Monitoring these levels alongside stock market movements will be crucial for identifying entry and exit points in the coming days.

In summary, the US-China trade deal announced on May 11, 2025, has catalyzed a bullish response across both stock and crypto markets, with significant implications for trading strategies. The interplay between traditional equities and cryptocurrencies highlights the importance of cross-market analysis, especially during major geopolitical events. Institutional involvement, as seen in the volume uptick for crypto ETFs and related stocks, further underscores the growing integration of these asset classes. Traders should remain vigilant for potential reversals but can capitalize on current momentum by focusing on key technical levels and volume trends in pairs like BTC/USD and ETH/USD.