Hong Kong media reported that "China-US negotiations have been extended for another 90 days for the tariff suspension period." How will this affect Bitcoin's trend?

The Hong Kong South China Morning Post (SCMP) quoted sources as saying that China and the United States will extend the tariff suspension period by another 90 days in negotiations in Sweden. Industry insiders indicate that a breakthrough on specific issues is unlikely in the new round of China-U.S. trade talks, but an escalation is not expected. Traders should still pay close attention. If negotiations break down or headlines turn hardline, the price of Bitcoin may quickly fall back.

A new round of negotiations between China and the United States will start this week. According to Hong Kong media reports, informed sources from both sides indicate that China and the United States are expected to extend the tariff truce deadline by another three months, or 90 days.

China and the United States reached an agreement in May where both sides agreed to eliminate most high tariffs on each other's goods within 90 days while continuing trade negotiations. The suspension order will expire on August 12.

In the third round of trade negotiations between the two major economies, both sides will elaborate on their views on major sticking points, such as the United States' concerns about China's industrial overcapacity — rather than achieving specific breakthroughs, sources said.

A source said that during the expected 90-day extension period, the two countries would commit not to impose additional tariffs on each other and would not escalate the trade war through other means.

U.S. President Trump imposed an additional 20% tariff on imports from China in March, claiming that China has not taken sufficient measures to prevent the flow of fentanyl into the United States. The U.S. has yet to indicate what sufficient progress it believes has been made regarding the fentanyl issue to justify a reduction in tariffs. China can seek clearer thresholds in the Stockholm Round of negotiations.

A knowledgeable source stated that Beijing believes the 20% fentanyl tariff is "unfair," but if the additional tariffs are removed, China may still be able to absorb the 10% baseline tariff on all imported products.

According to the Peterson Institute for International Economics, the average tariff on products exported from the United States to China is currently 51.1%. China believes this tariff is too high, especially considering that it has already absorbed the 25% tariff imposed by Trump during his first term.

Frederic Cho, the Vice Chairman of the Sweden-China Trade Committee, stated that extending the suspension of tariff increases is the most likely outcome, as U.S. Treasury Secretary Scott Bessent told Fox Business on Tuesday that he plans to discuss the extension agreement with his Chinese counterpart in Stockholm.

Cryptocurrency Market Reaction: Bitcoin Experiences Calm

Bitcoin typically reacts to geopolitical uncertainty. When tensions escalate, investors tend to shift towards safe-haven behavior. With the possibility of a ceasefire approaching, Bitcoin may benefit in the short term from improved market sentiment. A more predictable trade outlook could encourage institutional funds to flow into digital assets—especially in light of the attention on Ethereum spot ETFs.

However, traders should remain vigilant. If negotiations break down or news headlines turn hawkish, the price of Bitcoin may quickly retreat. Nonetheless, for the time being, this pause provides a window for the continued strengthening of bullish momentum.

As more funds flow into Bitcoin spot ETFs, the correlation between Bitcoin and risk assets such as the US stock market has strengthened. If a new round of negotiations between China and the US unexpectedly cools down, it may benefit the bullish trend of Bitcoin.