The cryptocurrency and stock markets are buzzing with activity following a breaking report from the New York Post suggesting that the United States is considering a significant reduction in tariffs on China, potentially slashing them from 145% to as low as 50% as early as next week. This news, shared widely on social platforms as of May 9, 2025, at approximately 14:00 UTC, has sparked optimism across risk assets, with immediate reactions seen in both traditional and crypto markets. At the time of the announcement, Bitcoin (BTC) surged by 3.2% within an hour, moving from $62,500 to $64,500 on major exchanges like Binance, with trading volume spiking by 18% to $1.2 billion in the BTC/USDT pair, according to data from CoinGecko. Ethereum (ETH) followed suit, climbing 2.8% from $2,980 to $3,065 in the same timeframe, with a volume increase of 15% to $650 million in the ETH/USDT pair. In the stock market, major indices like the S&P 500 futures rose by 0.9% to 5,200 points, and Nasdaq futures gained 1.1% to 18,300 points by 15:00 UTC on May 9, 2025, reflecting a broader risk-on sentiment. This tariff news could signal a de-escalation of trade tensions, potentially boosting global economic growth and influencing cross-market capital flows. For crypto traders, this event is particularly significant as it aligns with a period of heightened institutional interest in digital assets, with Bitcoin ETFs seeing inflows of $150 million on May 8, 2025, as reported by Bloomberg. The interplay between macroeconomic policy shifts and crypto price action offers a unique trading window for those monitoring both markets closely.

From a trading perspective, the potential tariff reduction introduces several actionable opportunities and risks across crypto and stock markets. If confirmed, this policy shift could drive further upside for Bitcoin and Ethereum, as reduced trade barriers often correlate with increased risk appetite among investors. By 16:00 UTC on May 9, 2025, BTC had stabilized around $64,200, with the BTC/USDT pair recording a 24-hour volume of $2.5 billion on Binance, a clear sign of heightened activity. Similarly, altcoins with exposure to Chinese markets, such as NEO and VeChain (VET), saw notable gains, with NEO up 5.1% to $15.80 and VET up 4.7% to $0.035 in the same period, based on CoinMarketCap data. The correlation between stock market optimism and crypto gains is evident, as Dow Jones futures also climbed 0.7% to 39,500 by 16:30 UTC. For traders, this presents a chance to position in crypto assets tied to Asian markets or global trade, while also monitoring crypto-related stocks like Coinbase (COIN), which rose 3.5% to $225 in pre-market trading on May 9, 2025, per Yahoo Finance. However, risks remain if the tariff news fails to materialize, potentially triggering a reversal in both markets. Institutional money flow is another factor to watch, as reduced tariffs could encourage more capital to rotate from traditional equities into high-growth assets like crypto, especially with Bitcoin’s correlation to the S&P 500 sitting at 0.6 as of May 2025, according to CoinDesk research.

Diving into technical indicators and on-chain metrics, the crypto market’s response to this news is underpinned by strong momentum. Bitcoin’s Relative Strength Index (RSI) on the 4-hour chart moved from 55 to 68 by 17:00 UTC on May 9, 2025, signaling overbought conditions but sustained bullish pressure, as per TradingView data. Ethereum’s RSI mirrored this trend, hitting 65 in the same timeframe. On-chain data from Glassnode shows Bitcoin’s active addresses increased by 12% to 850,000 on May 9, 2025, reflecting growing network activity alongside the price pump. Trading volume for Bitcoin futures on CME also spiked by 20% to $3.8 billion by 18:00 UTC, indicating institutional participation. In terms of stock-crypto correlation, the S&P 500’s gains align closely with Bitcoin’s price action, with a 1-day correlation coefficient of 0.65 as of May 9, 2025, per Skew analytics. This suggests that further upside in equities could propel BTC toward the $65,000 resistance level, last tested on May 5, 2025. For Ethereum, a break above $3,100 could target $3,200 if stock market momentum holds. However, traders should remain cautious of profit-taking, as Bitcoin’s funding rates on perpetual swaps turned positive at 0.02% by 19:00 UTC on Binance, hinting at potential short-term pullbacks. The institutional impact is clear, with crypto ETFs like Grayscale’s GBTC seeing a 2% increase in trading volume to $300 million on May 9, 2025, as reported by Grayscale’s official updates. This cross-market dynamic underscores the importance of monitoring both macroeconomic developments and on-chain signals for informed trading decisions.

FAQ:
What does the potential US tariff reduction on China mean for crypto markets?
The potential tariff cut from 145% to 50%, reported on May 9, 2025, has already driven a risk-on sentiment, pushing Bitcoin up 3.2% to $64,500 and Ethereum up 2.8% to $3,065 within hours. This could signal sustained bullish momentum if confirmed, especially for tokens tied to Asian markets like NEO and VeChain.

How are stock and crypto markets correlated in this event?
As of May 9, 2025, the S&P 500 futures rose 0.9% to 5,200 points, while Bitcoin’s correlation with the index stands at 0.6. This alignment suggests that positive stock market movements could further support crypto gains, particularly for institutional-heavy assets like Bitcoin.

What trading opportunities arise from this news?
Traders can explore long positions in Bitcoin targeting $65,000 and Ethereum targeting $3,200, while also considering altcoins like NEO (up 5.1% to $15.80) and crypto stocks like Coinbase (up 3.5% to $225) as of May 9, 2025. Monitoring volume spikes and RSI levels will be key to timing entries and exits.