Crypto Markets Rally as U.S.-China Tensions Thaw—BTC and Altcoins Breathe Easy

Geopolitical winds shift: Easing friction between Washington and Beijing sends risk assets soaring. Bitcoin leads the charge, altcoins follow—because nothing fuels speculative rallies like temporary peace (and the inevitable Wall Street pivot to ’this time it’s different’).

Source: CoinMarketCap

Solana and XRP were up 8% over the same period as both altcoins blasted above $150 and $2.2, respectively. However, the major rallies were among the mid-cap altcoins. Sui [SUI] blasted 25% while Avalanche [AVAX] ripped 12%. 

What’s behind the crypto rally today?

According to market analysts, the extended recovery was boosted by potential U.S.-China de-escalation on the tariff front and President Donald Trump’s U-turn on firing Fed chair Jerome Powell. 

Source: Bloomberg (excerpt on US de-escalation report) 

According to a Bloomberg report, the US Treasury Secretary Scott Bessent said the China standoff was ‘unsustainable’ and expected the situation to ‘de-escalate.’ 

In another media interview, Trump backtracked on his threats to Fed chair Powell and stated, 

“I have no intention of firing him. I would like to see him be a little more active in terms of his idea to lower interest rates.”

The two macro factors have been key drivers behind recent US dollar-based assets sell-offs and the decoupling of BTC from US stocks.

However, with the perceived positive macro-shift, BTC and risk-on assets rallied harder. 

Source: Soso Value

In fact, even institutional bids increased to levels last seen in January, with a whopping $936 million in daily inflows to U.S. spot BTC ETFs on Tuesday. 

For his part, BitMEX founder, Arthur Hayes, projected the BTC rally could extend to $110K and $200K, citing a potential increase in dollar liquidity. 

Tracy Jin, COO of MEXC crypto exchange, shared a similar outlook. Jin told AMBCrypto that BTC was still open for bids at current levels. 

“This scenario (portfolio diversification) could push Bitcoin to all-time highs in the $150,000–$200,000 range, followed by a gradual decline in volatility. Until those levels are reached, the market remains open for entry.”