China and U.S. Plan Trade Truce Extension Before Talks: How It Can Affect Bitcoin

The United States and China are expected to extend their trade truce by 90 days. The extension would delay new tariffs and create space for fresh negotiations in Stockholm.

Sources told South China Morning Post that both sides want to reduce volatility before the next high-level talks.

Previous meetings in Geneva and London failed to deliver breakthroughs, but a longer pause signals rising urgency. This temporary relief comes as both countries face political and economic challenges—and want to avoid headlines that might shake markets.

Fentanyl Dispute Joins Trade Agenda

The focus isn’t limited to tariffs this time. China plans to dispute U.S. sanctions on chemicals tied to fentanyl production. Washington has blamed China for fueling America’s opioid crisis, while Beijing insists the issue needs joint enforcement—not penalties.

Any agreement would ease pressure on global trade. Over $700 billion in goods remain impacted by duties. A new freeze could steady supply chains, even if deeper conflicts over IP theft and digital trade stay unresolved.

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Crypto Reaction: Bitcoin Eyes a Calm Window

Bitcoin often reacts to geopolitical uncertainty. When tension rises, investors shift to risk-off behavior. With a truce likely, Bitcoin could benefit from improved market sentiment in the short term. A more predictable trade outlook may encourage institutional flows into digital assets—especially as Ethereum spot ETFs also gain attention.

Still, traders should watch closely. If talks collapse or headlines turn hawkish, Bitcoin could retrace fast. For now, though, the pause provides a window for bullish momentum to continue building.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.