Bitcoin Shakes on U.S.–China Trade Truce — $1.1B in Liquidations Hit the Market

A thaw in trade tensions between Washington and Beijing sent shockwaves through the crypto market — Bitcoin briefly dropped below $108K before bouncing past $110K, wiping out more than $1.1B in leveraged positions.

⚡ Quick Hits

• 🇺🇸🤝🇨🇳 Tariff truce: Overall duties cut from 57% → 47%
• 💣 Liquidations: $360M in BTC longs, $800M market-wide
• 💵 BTC range: $108K → $110K after rebound
• 🏛 Fed factor: Rate cut adds bullish backdrop
• 🧠 Sentiment: Macro optimism meets crypto volatility

🧩 Trade Diplomacy Meets Crypto Chaos

After a high-profile U.S.–China summit in Seoul, Presidents Donald Trump and Xi Jinping agreed to roll back select tariffs — a move that instantly rippled through global markets.

Bitcoin, long treated as a barometer for macro uncertainty, reacted violently: plunging below $108,000, then rebounding above $110,000 as the details of the agreement emerged.

The swing liquidated over $1.1 billion in leveraged positions, exposing how tightly Bitcoin’s short-term moves are tied to macro headlines — not blockchain fundamentals.

“Bitcoin’s sub-$108K dip reflects market sensitivity to trade risk, even in a Fed-easing environment,” said one crypto strategist.

💼 Inside the Trade Deal

Tariff Reductions — Average U.S. tariffs on Chinese goods drop from 57% to 47%, with fentanyl-related imports taxed at just 10%.

Tech Collaboration — Beijing agrees to re-open dialogue with Nvidia over chip exports and AI research.

Rare Earths — A one-year pact ensures smoother mineral supply chains — critical for EV and semiconductor industries.

Geopolitical Cooperation — Washington and Beijing will coordinate policy on the Russia–Ukraine conflict, signaling cautious diplomatic re-alignment.

Next Step — President Trump plans to visit China in April 2026, calling the meeting “a 12 out of 10.”

📉 Why Bitcoin Reacted

Bitcoin’s connection to global macro events isn’t new. When Trump reimposed tariffs last October, BTC crashed from $121K to $110K within hours. The logic: higher trade friction = stronger dollar = weaker crypto risk appetite.

Even after the Fed’s latest rate cut, which typically boosts BTC sentiment, traders dumped positions on uncertainty around the pace of tariff rollbacks — proving that macro still drives crypto.

⚙️ Liquidation Breakdown

According to CoinGlass data:

• 💀 $360M in Bitcoin longs erased in 24 hours
• 💀 $800M+ wiped out across broader crypto markets
• 🔄 Leverage ratios remain near mid-2021 highs

The flush signals a classic “leverage cleanse” before potential upside — but also warns that over-extended longs are still dominating the market.

🔮 The Road Ahead

If U.S.–China negotiations progress toward a comprehensive trade pact, Bitcoin could stabilize above $110K and potentially test $115K in coming weeks.

But any reversal — new tariffs, political tension, or Fed hawkishness — could quickly drag BTC back below $108K.

In short: macro diplomacy is now crypto’s volatility trigger.

TL;DR

• 🇺🇸🤝🇨🇳 U.S.–China tariff truce shakes global markets
• 💰 Bitcoin drops below $108K, rebounds past $110K
• ⚡ $1.1B in liquidations hit leveraged traders
• 🪙 BTC remains macro-sensitive despite Fed easing
• 📈 Next target: $115K if trade optimism holds