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Bitcoin seesaws after tariff cuts 🔃
The top cryptocurrency touched its highest price since January, then dipped after the U.S. revealed a China trade truce.
James Rubin
May 12, 2025
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📝 What you need to know
Bitcoin jumped above $105,000 for the first time since January, but then retreated even as equities rose following an announcement that the U.S. and China were scaling back their trade war—at least for 90 days.
The largest cryptocurrency by market capitalization was recently trading at about $102,600, down almost 2% on the day, according to crypto markets data provider CoinGecko.
“This truce is temporary, and the underlying trade issues remain unresolved, which could reintroduce volatility in the near future,” Joe DiPasquale, CEO of crypto fund manager BitBull Capital, wrote in a note to Decrypt. “Bitcoin’s pullback from its $105K high underscores just how sensitive the market remains to shifting macro narratives—especially when moves are driven more by sentiment than structural flows.”
Still, BTC is up 21% over the past month, with many investors seeing it as a hedge against the erratic trade policies of the Trump administration and other macroeconomic uncertainty that has battered markets. The tech-heavy Nasdaq recently spiked almost 4%, while the S&P 500 was up about 2.5% as markets embraced the agreement, which will mean a reduction in tariffs from 125% to 10% from both countries.
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