Crypto remains strong amid China news

The Trump Administration has brought more good news to investors as the US and China agree on a trade deal. So far, that has also meant good things for crypto, but is the increase in value of the three biggest crypto's driven by pure sentiment, or something else? James Toledano, Chief Operating Officer at Unity Wallet provides his insights.

"There can be no doubt that the recent rebound in Bitcoin, Ethereum, and Solana reflects renewed market optimism following President Trump’s retreat from aggressive tariff rhetoric and new trade deals with the UK and China. However, I do believe this could be a hollow rebound, as it is based on sentiment and the political moves of a single man. Anyone who is serious about crypto would prefer that fundamentals are the driving force.

"That said, these recent developments have provided a temporary boost to risk assets, including crypto. However, while BTC hovering around $104,000 places a $110K breakout within reach, caution remains warranted.

"ETF inflows, particularly BlackRock’s, remain strong, but macro risks—ranging from geopolitical instability to potential Federal Reserve action or lack thereof could cap gains. Without sustained institutional momentum and further clarity on regulation, we may see consolidation before any new all-time highs are tested.

"The U.S.-China tariff changes have certainly had an impact on markets and it is certainly true that select digital assets have increasingly been seen as macro hedges and their sensitivity to global instability remains significant. Recent patterns show crypto no longer operates in a vacuum; it reacts in tandem with traditional financial markets, especially during acute stress.

"However, unlike equities, crypto often rebounds faster and draws capital during prolonged crises, due to its decentralized, non-sovereign appeal. So, while further unrest may trigger short-term volatility, crypto’s structural independence could enhance its long-term resilience—potentially outpacing traditional assets in periods of sustained dislocation."

Author Bio

James's recent insights and institutional knowledge have established him as an insightful crypto thought leader, where he has been regularly featured in Forbes, The Independent, Newsweek, Barron’s, Benzinga, Cointelegraph, Blockworks and Market Watch, to name a few.