Crypto Rally Stalls as Bessent Warns U.S.-China Deal Could Take Years
The crypto market’s momentum slowed on Wednesday after U.S. Treasury Secretary Scott Bessent reiterated that a trade deal between Washington and Beijing would take years to finalize.
Bitcoin (BTC) rose 2.6% in the last 24 hours and 12.2% over the past seven days, hitting $93,600, its highest price since early March. However, it underperformed compared to many other digital assets. The CoinDesk 20 — a benchmark of the top 20 cryptocurrencies excluding stablecoins, memecoins, and exchange tokens — rose 4.2% in the last 24 hours. Sui (SUI) surged 24%, while Cardano (ADA) and Chainlink (LINK) both saw 7% gains.
Crypto-related stocks, which started the day strong, saw their gains fade as the session progressed. Miners like Bitdeer (BTDR) and Core Scientific (CORZ) backed off from their initial double-digit increases, ending the day up around 4%. Coinbase (COIN) and MicroStrategy (MSTR) saw modest gains of 2.1% and 1.4%, respectively.
President Donald Trump, in recent statements, seemed to ease the pressure on China, suggesting tariffs on the country could be reduced substantially. However, Bessent emphasized on Wednesday that no unilateral offer had been made to cut tariffs, and it would likely take two to three years for a comprehensive deal between the U.S. and China to materialize.
“A meaningful thaw in relations may not happen until we see substantial developments after the Xi-Trump summit,” said Paul Howard, director at crypto trading firm Wincent. He noted that markets had already priced in the tough rhetoric from both sides, which had dampened risk appetite in recent months.
“Once the initial harsh stances pass, markets tend to stabilize, which could benefit risk assets like crypto,” Howard added.
BTC ETF Inflows Surge
In a positive sign for institutional adoption, U.S.-listed spot Bitcoin exchange-traded funds (ETFs) have attracted nearly $1.3 billion in net inflows this week, according to SoSoValue data. The funds enjoyed their best day on Tuesday since mid-January.
“This rally isn’t driven by retail speculation — it’s institutional capital positioning itself in anticipation of a new monetary and political landscape,” said Matt Mena, crypto research strategist at 21Shares. “Investors are increasingly viewing Bitcoin not just as a speculative asset, but as a safe haven amid growing uncertainty in traditional markets.”
Despite the strong performance, Mena cautioned that Bitcoin faces resistance near the $95,000 mark, and a pullback could be possible in the near term.
Bitcoin Could Follow Gold’s Path
Meanwhile, gold saw a decline of 2.5% on the day, trading at $3,290 per ounce after a sharp rally that saw the precious metal climb 35% to $3,500 in the last four months. This could suggest that the market is moving beyond peak uncertainty.
The slowdown in gold’s price movement could be a bullish signal for Bitcoin, according to Charles Edwards, founder of Capriole Investments, a bitcoin-focused hedge fund. Edwards shared a chart on X showing that Bitcoin has historically followed gold’s price movements with a few months’ delay.
“Bitcoin is showing strong momentum,” Edwards wrote in his post. “We’ve decoupled from risk assets, and the market is starting to anticipate that Bitcoin is becoming ‘digital gold.’ If traditional risk assets continue to weaken, Bitcoin remains the ultimate hedge against quantitative easing (QE).”
