On Wednesday, Bitcoin and Ethereum continued their upward momentum, mirroring the gains seen in broader financial markets as investors responded to easing trade tensions and China’s ongoing initiatives to stabilize its economy.
Bitcoin surged by 5% in the last 24 hours, approaching $92,000, adding to its 9% increase over the past week. Ethereum mirrored this trend, climbing 4.7% to reach $2,285, according to CoinGecko data.
This increase occurs as traders evaluate the potential economic consequences of rising U.S.-China trade tensions, which have led Beijing to announce additional stimulus measures at the start of the National People’s Congress.
Chinese Premier Li Qiang recognized the international pressures impacting the world’s second-largest economy, noting that “an increasingly complex and severe external environment may exert a greater impact on China in areas such as trade, science, and technology,” as reported by various media outlets.
In response, Beijing is intensifying its fiscal stimulus efforts, targeting a higher government deficit and increasing spending on infrastructure projects.
“As macroeconomic conditions evolve, cryptocurrency remains closely tied to stock markets, with price movements reflecting wider economic trends,” stated Singapore-based digital asset trading firm QCP Capital in a recent commentary.
They highlighted the upcoming White House Crypto Summit, scheduled for Friday, as a potential driver of investor optimism but cautioned that market sentiment could shift rapidly, a trend observed in recent weeks.
“In the absence of specific executive orders, funding commitments, or Congressional support, the market remains cautious,” they noted. “Investors perceive this as a high-stakes asymmetric event.”
On Wednesday, the White House announced a temporary, one-month exemption from new U.S. tariffs on imports from Mexico and Canada, aimed at providing U.S. automakers time to adapt to the updated trade policy.
President Donald Trump urged automakers to “begin investing and relocating production to the United States, where they won’t incur any tariffs,” as stated by White House press secretary Karoline Leavitt.
Wider markets reacted positively, with the S&P 500 and Dow Jones Industrial Average each increasing by 1.1%, and the Nasdaq Composite rising by 1.5%.
Lower Treasury yields and softer oil prices further indicated improving financial conditions, providing additional support for risk assets.
“Discussions about tariffs are influencing the dollar, interest rates, and oil prices to decline, which is enhancing financial conditions,” stated Juan Leon, Senior Investment Strategist at Bitwise Asset Management, in an interview with Decrypt. “Additionally, China has just announced further stimulus measures. All this is creating a favorable environment for cryptocurrency to rally.”
Leon emphasized that if trade tensions escalate further, it could trigger a wave of global monetary easing, likely boosting interest in alternative assets, including cryptocurrencies.
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