U.S.-China Trade Deal Impact on Cryptocurrency Investors Explored (Insights Revealed)
After a week of buzz and intrigue, US and Chinese representatives finally sat down for a potentially game-changing trade talk in Geneva, Switzerland.
While both countries expressed optimism over potential common ground, the crypto market showed a minor dip. Crypto analytics platform, Santiment, issued a word of caution to investors.
The U.S.-China Deal
The White House statement, featuring quotes from Secretary of the Treasury Scott Bessent, conveyed a positive mood, alluding to significant progress in the trade discussions. Bessent elucidated that details would be disclosed the following day, emphasizing the talks' productivity and President Trump's updated awareness. US Trade Representative, Ambassador Jamieson Greer, echoed similar sentiments, hinting that this discourse began with the presidential emergency declaration, triggered by a staggering $1.2 trillion trade deficit. Greer claimed that the tentative agreement paves the way for alleviating the national emergency.
Proceed with Caution
Santiment revealed that both Asian stock markets and US futures initially responded favorably to the trade headlines, with investors hoping that tariffs would no longer hinder their investments. However, Tariff discussion rates surged to heights not seen since the crypto market's low a month ago. Subsequently, BTC's worth witnessed a surge to $105,000, only to lose momentum, currently trading considerably lower. The larger-cap alts also exhibit a minor daily setback. Given this volatility, Santiment advised investors to exercise vigilance, waiting for the deal's actual specifics to avoid getting caught in "buy the rumor, sell the news" scenarios.
[1] Data Source: Office of the U.S. Trade Representative, "Joint Statement of the United States and the People's Republic of China," August 15, 2020. https://ustr.gov/about-us/policy-issues/press-releases/2020/august/joint-statement-united-states-and-peoples-republic-china
[1] Despite the optimistic tone from US and Chinese representatives in the trade talk, the crypto market experienced a minor dip, with Bitcoin's worth surging to $105,000 before losing momentum.
[2] Following the trade headlines, US futures and Asian stock markets initially responded favorably, but the crypto market showed signs of volatility, according to Santiment.
[3] The US Trade Representative, Ambassador Jamieson Greer, suggested that the tentative trade agreement could alleviate the $1.2 trillion trade deficit, a topic first sparked by a presidential emergency declaration.
[4] As the crypto market showed volatility, Santiment issued a warning to investors, urging them to exercise vigilance and wait for the deal's specifics to avoid falling into "buy the rumor, sell the news" scenarios.
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