Bitcoin and the broader crypto market remained suspended on Tuesday, even as constructive diplomatic debate unfolded in Stockholm between the US and China.
Beijing trader Li Chenggang reportedly agreed to work to extend the suspension of tariffs beyond the August 12 deadline. However, U.S. Treasury Secretary Scott Bescent has made it clear that such an extension was debated but “not decided.”
The 90-day tariff suspension remains intact, with a 30% tariff on Chinese products imported by the US, and a 10% for US products that enter China.
Although there is no official agenda for these talks, President Donald Trump has separately informed of a potential meeting with Chinese President Xi Jinping.
“I might go to China,” Trump said. “At the invitation of President XI.”
Despite the constructive tone, the US-China trade outlook remains fluid with no concrete resolution. As a result, the Crypto market could strengthen its focus on upcoming events.
“It’s a pivotal week in terms of macroeconomic terms,” said Daniel Liu, CEO of Republic Technology. Decryption“A preferred macro heading string can catalyze sharp movements of the cryptography.”
Bitcoin prices witnessed a slight drawdown following a lecture in Stockholm. As of the end of Tuesday, Bitcoin prices had fallen slightly from their previous day’s high of $119,258. Co Ringecko data.
The impact of trade policy on risk assets has not been overlooked in recent months. Sawing Trump suggests and then backtracks tariffs.
economist Make a claim The cleaning fees proposed by the White House could exacerbate the federal reserve’s fight against inflation.
Now, all eyes are in the federal government’s upcoming interest rate decisions at 2pm on Wednesday. According to CME, the market odds for interest rate reductions in July remained at 3.1%; FedWatch ToolSeptember odds show a 65.4% chance of a cut.
Low interest rates typically create a more favorable environment for risky assets as they invest less and cheaper investments in high-end holdings such as cryptocurrencies and stocks than traditional low two-cost options such as bonds.
Traders will closely monitor Federal Reserve Chair Jerome Powell’s tone during the upcoming FOMC meetings. Signs of “economic debilitating” could strengthen speed reduction odds,” Liu explained.
