A tentative calm settled over global markets on Monday as Washington and Beijing agreed to push their tariff truce out by another 90 days. The news was a welcome relief, at least in the crypto front, as Bitcoin traders set their sights on the next target: $120,000

Talks resume in Stockholm, with both sides saying they won’t slap on new duties during that window. It’s a relief for companies reeling from duties on more than $700 billion in goods since 2018.

Third Round Talks Underway

According to reports, negotiators will build on meetings in Geneva and London. They plan to tackle old fights over tech rules, digital services and forced transfers of know‑how.

Business leaders have already paused major moves, waiting to see if the break holds. A fresh round of face‑to‑face diplomacy seems meant to avoid sudden shocks to farms, factories and supply chains.

Early signals from Beijing suggest a willingness to talk, even as economic growth slows at home. In the last trade round, tariffs jumped to highs of 25% on key items like semiconductors and soybeans.

Now both sides seem to be testing whether a temporary stop can become a stepping stone to deeper fixes.

China Raises Fentanyl Tariff Issue

A new wrinkle in the discussions involves fentanyl‑related chemicals. Based on reports, China wants US President Donald Trump’s administration to lift duties on certain precursors used in opioid production.

Beijing argues that those taxes are making it harder to track illegal shipments, even as overdose deaths surge in the US.

American officials have blamed Chinese suppliers for feeding a crisis that kills tens of thousands each year. In retaliation, Washington hit chemical imports with extra levies.

Now China is pushing for a shift toward sharing lab data and law‑enforcement tips instead of sticking with punitive charges. Washington faces a tricky choice.

Domestic pressure is intense, with voters demanding tough action on both drugs and trade ahead of a high‑stakes election.

Bitcoin Up As Businesses And Markets On Edge

Markets reacted quietly at first. Stocks held near flat lines, while traders eyed the pause as a temporary balm.

Cryptocurrencies, however, showed more drama. Bitcoin jumped to $119,380—up 2% over 24 hours—even though daily volumes fell by 8.7% to $50 billion.

At current levels, Bitcoin sits just 2.88% below its July 13 peak of $123,102. Network data also hit a record hashrate of 932 EH/s, with difficulty at 127.62 trillion.

Analysts caution against reading too much into a single headline. Low volume can fuel sharp swings, and crypto markets often move on a mix of factors from ETF flows to miner activity.

Featured image from Getty Images, chart from TradingView

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Filed under: Bitcoin - @ July 28, 2025 7:30 pm