Bitcoin and Ethereum extended their gains Wednesday, rising alongside broader financial markets as investors reacted to a combination of easing trade concerns and China's latest efforts to stabilize its economy.
Bitcoin’s price has increased 5% within the past day, to $92,000. The increase is on top of a weekly gain of 9%. CoinGecko’s data show that Ethereum is following suit and has risen 4.7%, to $2 285.
This rally occurs as traders consider the possible economic consequences of increasing U.S. China Trade tensions. Beijing announced additional stimulus measures to coincide with the National People’s Congress opening.
Li Qiang, Premier of China acknowledged that the second largest economy in the world is facing external pressures. “an increasingly complex and severe external environment may exert a greater impact on China in areas such as trade, science, and technology,” Media reports Reports.
Beijing has increased fiscal stimulus to counter this. It is increasing the government’s deficit target, and spending on infrastructure.
“With macro conditions in flux, crypto remains tightly linked to equities, with price action reflecting broader economic shifts,” In a recent article, Singapore-based QCP Capital, a digital asset trading company wrote about its activities. Note:.
It pointed to the first-ever White House Crypto Summit to be held on Friday as an additional catalyst spurring investor hopes but warned the mood could shift dramatically—a common hallmark of market activity in recent weeks.
The market is still in a waiting-and-see-mode, without any executive orders or funding commitments from Congress." it wrote. “Investors view this as an asymmetric event with high stakes.”
On Wednesday, the White House announced a temporary, one-month exemption from new U.S. tariffs on imports from Mexico and Canada, aimed at giving U.S. automakers time to adjust to the new trade policy.
President Donald Trump told automakers to "Karoline L. Leavitt is the White House’s press secretary. She said, “Start moving and shifting production here in America to avoid tariffs.”
Broader markets responded favorably, with the S&P 500 and Dow Jones Industrial Average each rising 1.1%, while the Nasdaq Composite advanced 1.5%.
The lower Treasury yields, as well as the lower oil prices, also indicate improved financial conditions. This further supports risk assets.
“The tariff talks are driving the dollar, interest rates, and oil lower, easing financial conditions,” Juan Leon, Senior Investment Strategist of Bitwise Asset Management said Decrypt. “On top of that, China just announced more stimulus. All of that is providing ammunition for crypto to rally.”
Leon stated that trade tensions could escalate even further and lead to global monetary loosening, which in turn would boost demand for other assets including cryptocurrency.