Bitcoin Tops $105K As U.S. Prolongs China Tariff Ceasefire — Will $120K Now Hit?

Key Takeaways:

Bitcoin price surges $2,000 in minutes after U.S. announces tariffs on China will remain.
Speculation is mounting in the market over a possible rally before July 8 cut-off for fresh trade deals.
Ethereum, Solana, and other altcoins rise as investors react to signs of cooling trade tensions.

As trade negotiations between the U.S. and China intensify, the White House has extended the pause on Trump-era tariffs until August 31, sending crypto markets into a rapid upswing. Speculations are now abounding if this could pave the way for Bitcoin to try breaking its new all-time highs.

Bitcoin Reacts Swiftly to Tariff Pause

Following the announcement from Office of the U.S Trade Representative, Bitcoin surged from $103,100 to well over $105,400 receiving increases within the hour to its price, marking the highest hourly spike in more than two weeks. Analysts say the move is driven by traders pricing in optimism over de-escalating trade tensions between the world’s two largest economies.

Historically, markets—both traditional and digital—respond positively to signs of trade stability. The April tariff delay saw Bitcoin rise from $74,500 to more than $111,000 within weeks. Now, with a similar macro backdrop and institutional confidence growing, momentum could accelerate.

Ethereum and Altcoins Follow the Trend

Ethereum also responded positively, climbing 2.67% to $2,606.89. Solana gained nearly 3.2%, while Avalanche, XRP, and Dogecoin each saw intraday gains between 1.5% and 2.4%.

“Markets see the pause not only as a relief for global supply chains but as a green light for risk-on assets,” said Lina Zhang, senior analyst at CryptoQuant. “With fewer uncertainties on the macro front, crypto can breathe.”

Trade Deal Deadline Adds Pressure—and Opportunity All Eyes on July 8

The Trump administration has set a firm July 8 deadline to finalize trade deals with major partners, including China. According to White House statements, countries failing to reach an agreement by then could face an automatic reinstatement of the previously paused tariffs.

This ticking clock is creating a climate of urgency in both diplomatic and financial spheres. Crypto traders are watching closely—many believe any indication of progress before July 8 could trigger further rallies.

“Institutional money is waiting,” said Ed Moya, senior market strategist at OANDA. “If negotiations show traction, we could see Bitcoin testing $120K as early as mid-July.”

Legal Uncertainty Fuels Volatility Court Challenges to Trump’s Tariff Powers

Two recent decisions by federal courts have made things much more complicated. The International Emergency Economic Powers Act (IEEPA) gave judges in New York and Washington, D.C., the power to say that Trump’s tariffs were too high. The administration has appealed the decisions, but a final decision is still waiting. This might affect the legality of current and future tariffs.

For crypto, these legal uncertainties create both risk and opportunity. Some investors see it as a signal of weakening U.S. protectionist policy, while others are preparing for a more volatile macro environment.

“Every piece of uncertainty in the traditional system becomes a speculative premium for decentralized assets like Bitcoin,” said Ki Young Ju, CEO of CryptoQuant.

What’s Driving Crypto’s Macro Sensitivity? Tariff News = Sentiment Shifts

In the past, Bitcoin and other big cryptocurrencies have acted more like goods than money. They respond fast to changes in market mood, especially when they have to do with global commerce or monetary policy.

In this case, a delay in tariffs functions similarly to a rate cut—it’s viewed as easing pressure on global economic activity. That means good things for risky assets, like crypto.

The Federal Reserve has hinted that it would stop raising interest rates, and inflation is slowing down in important markets. This makes macro conditions more conducive for a fresh bull run.

Speculation Mounts: Will Bitcoin Break $120K Before August?

With Bitcoin hovering above $105K and the trade deadline just over a month away, speculation is building that BTC could target the $115K–$120K range next. On-chain data from Glassnode shows rising whale activity, and open interest on Bitcoin futures has surged 11% in the past 24 hours.

According to Binance’s order book data, the next significant resistance lies around the $109,800 mark, while options traders are increasingly placing bets on Bitcoin surpassing $115K by mid-July.

“Markets are treating this tariff extension as a de-risking signal. It reduces one key uncertainty and opens room for price expansion,” explained Noelle Acheson, author of the Crypto Is Macro Now newsletter.

Investor Sentiment: Greed is Back

The Crypto Fear & Greed Index has returned to “Greed” territory after hovering in “Neutral” for several weeks. According to data from Alternative.me, the index jumped from 52 to 69 following the tariff announcement.

Additionally, inflows into spot Bitcoin ETFs have resumed after a brief pause. BlackRock’s iShares Bitcoin Trust (IBIT) saw $140 million in inflows in a single day—the highest since mid-May. Fidelity’s Wise Origin Bitcoin Fund also recorded strong activity.

Tariffs, Markets, and the Future of Decentralization

Though tariffs may seem like a purely geopolitical tool, they have direct implications for decentralized markets. The current policy pause buys time not just for negotiators, but for investors recalibrating their risk exposure across assets. With crypto increasingly woven into the fabric of global financial dynamics, each development in Washington and Beijing sends ripples far beyond Wall Street.

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