U.S.–China Trade Talks Show Promise, but Crypto Markets Stumble Amid Uncertainty

U.S. officials say significant headway was made in high-level trade talks with China over the weekend, lifting optimism on Wall Street even as crypto markets pulled back amid lingering uncertainty.

In a statement Sunday, Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer described recent negotiations in Switzerland with Chinese officials as “productive” and “constructive.” Though no concrete details were shared, Bessent said, “substantial progress” had been made and a more detailed update would be issued Monday.

“We moved faster than expected, which means our differences may be narrower than assumed,” Greer added, referencing the U.S.’s $1.2 trillion trade deficit and President Trump’s declaration of trade imbalance as a national emergency.

The upbeat tone from Washington boosted U.S. stock futures: Dow futures rose 1.3%, S&P 500 gained 1.4%, and Nasdaq 100 jumped 1.6% in early trading. Meanwhile, markets in Asia are reacting to China’s ongoing economic weakness. New data released Saturday showed consumer prices dropped for a third consecutive month, falling 0.1% year-on-year in April. The deflationary trend highlights waning domestic demand and increases pressure on the People’s Bank of China to introduce fresh stimulus.

Crypto Markets Retreat Amid Uncertainty

Despite strong stock market sentiment, Bitcoin and Ethereum slipped over the weekend as traders digested the vague nature of the trade discussions. Bitcoin fell 0.6% to $103,900, while Ether dropped 2.9% to $2,507.

Altcoins were hit harder. Solana, Dogecoin, and XRP recorded losses between 4% and 8%, dragged down by ETF outflows and broader risk aversion. The crypto market’s retreat follows a week of bullish momentum, during which Ethereum briefly outpaced Bitcoin and Dogecoin logged double-digit gains.

As of now, tariff levels remain elevated, with the U.S. imposing 145% tariffs on most Chinese imports and China retaliating with duties up to 125%. These measures were initially implemented over trade imbalances and national security concerns, including the opioid crisis. Market participants now await Monday’s joint statement from the White House, which is expected to clarify whether the diplomatic tone will translate into meaningful changes—especially around tariffs, enforcement, and future timelines.

Until then, investor sentiment remains cautiously optimistic, with traditional markets reacting positively to the diplomatic progress, while crypto traders remain wary of the lack of clarity.