Crypto Surges as US China Trade Talks Signal Possible Market Relief

The US and China hold trade talks in London this week, and it’s already showing an impact — especially in the crypto market. The U.S.-China meeting today at Lancaster House entered its second day after both sides called Monday’s six-hour meeting “good” and “fruitful.” The goal? To reduce tensions around technology exports and rare earth supplies.

Source: X

Led by US Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, the American team suggested they might relax export rules. But only if China also softens its limits on rare earths — key materials used in tech and defense products. On the other side, China’s Vice Premier He Lifeng, along with Commerce Minister Wang Wentao and trade envoy Li Chenggang, pushed for a rollback of earlier US restrictions. President Trump , when asked about easing controls, simply said, “We’ll see.”

These US-China trade talks today are being closely watched. If both countries agree to stabilize their ties, it could bring more confidence not just in traditional markets but also in crypto.

Trade War Hurts Exports: How It’s Affecting the Market

Even as tariff talks continue, data from May shows the real impact of the war . Chinese exports to the US dropped by 34% — the biggest fall since February 2020, according to The Kobeissi Letter . This is the second straight monthly decline, showing a deep contraction in US demand for Chinese goods.

Source: X

Interestingly, this happened after a trade deal on May 12 had lowered tariffs to 30%. Despite that, exports still fell hard. Meanwhile, China’s exports to the rest of the world were mostly flat, while shipments to Vietnam increased by 22%. This suggests that Chinese firms are rerouting goods to avoid US duties.

The latest chart shows that since January 2022, Chinese exports to the US have fallen by nearly 40% year-over-year. In contrast, exports to other countries have stayed stable. This growing gap highlights how uncertain trade rules are shifting global supply routes.

US-China Trade Talks Spark Crypto Market Rally

While traditional markets react cautiously, crypto is clearly enjoying a rally. After day one of the China-US talks in London , the global crypto market cap jumped 3.70% to reach $3.41 trillion .

Here’s how the top cryptocurrencies performed:

• Bitcoin price surge : BTC jumped from $105,000 to $109,421.44 , a 3.66% rise in 24 hours.
  

• Ethereum saw the biggest gain among majors, climbing 7% to $2,667.64 .
  

• XRP is now at $2.28 , up about 3% on the day.
  

• Solana also joined the rally, increasing 5% to $158.15 .
  

So, why is crypto going up today ? Investors see hope that easing tensions between the US and China could lead to fewer restrictions and a healthier global economy — both positives for digital asset adoption and investment.

What to Expect Next?

The second day of US-China trade talks continues today in London. If both nations make progress, especially on lowering tariffs and easing tech restrictions, the move could help stabilize global economic ties. That would be a green signal for markets — especially crypto , where investors often react quickly to macro news.

Still, advanced chip exports like Nvidia’s H2O may remain restricted for now. But if the Trump tariffs news leads to softer policies, confidence in cryptocurrency and tech sectors may rise further. While no final deal has been reached yet, even signs of progress are enough to spark a bull run in crypto .