Futures Rise But Crypto Cautious: Progress In Talks With China

The tension in the crypto world is palpable, especially after the recent reports surrounding the US-China trade deal. US officials have indicated that “substantial progress” has been made in the talks, but details are still lacking. This lack of clarity has had a negative impact on the crypto market, where Bitcoin and Ether are experiencing a decline, likely due to general risk-taking among investors.

Optimism about trade

U.S. stock futures rose Sunday evening after the White House said talks with China had made significant progress. Dow futures rose 1,3%, while the S&P 500 and Nasdaq 100 also rose 1,4% and 1,6%, respectively. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer called the negotiations “productive” and “constructive” after two days of talks in Switzerland.

Bessent stressed that significant progress has been made and promised to reveal more details in the future. Greer added that the speed of the talks suggests that the differences are smaller than previously thought. This seems like a positive sign, especially given the massive $1,2 trillion trade deficit the US has with China.

Economic pressure in China

As talks between the two superpowers continue, recent data from China points to growing economic vulnerability. Consumer prices in China fell 0,1% year-on-year in April, pointing to ongoing deflation and weak demand, raising expectations for more stimulus from the People's Bank of China.

Despite the positive news about the negotiations, uncertainty about tariffs and enforcement remained a major factor in crypto markets. The lack of concrete details caused a setback in the prices of Bitcoin and Ether, which fell by 0,6% and 2,9% respectively. Many altcoins, including Solana and Dogecoin, fell, with losses reaching 8% amid heavy liquidations and ETF outflows.

Crypto Market Outlook

Despite the optimistic tone of the trade talks, the crypto market is still very fragile today. A joint statement from the White House is expected this week, which should provide more details on the progress of the talks. Only when more clarity is provided can we expect a stable direction in crypto prices again.

With these turbulent developments in mind, we remain vigilant about the impact of the trade agreements on financial markets and broader cryptocurrency sentiment.

Frequently Asked Questions

What is the recent situation surrounding the US-China trade agreements?
Recently, US officials have reported that substantial progress has been made in trade negotiations with China, but details are not yet being made public.

How do these negotiations impact the crypto markets?
The uncertainty surrounding the negotiations has led to some investor caution, resulting in declines in Bitcoin, Ether and several altcoins.

What can we expect from the coming period?
A joint statement is expected from the White House, which should provide more insight into the progress of the talks and could potentially improve market sentiment.