Bitcoin and Ethereum extended their gains Wednesday, rising alongside broader financial markets as investors reacted to a combination of easing trade concerns and China’s latest efforts to stabilize its economy.
Bitcoin has climbed 5% over the past 24 hours near $92,000, adding to a 9% gain over the past week. Ethereum has followed suit, rising 4.7% to $2,285, CoinGecko data shows.
The rally comes as traders assess the potential economic fallout from escalating U.S.-China trade tensions, which prompted Beijing to announce additional stimulus measures at the opening of the National People’s Congress.
Chinese Premier Li Qiang acknowledged the external pressures facing the world’s second-largest economy, stating that “an increasingly complex and severe external environment may exert a greater impact on China in areas such as trade, science, and technology,” according to media reports.
To counteract this, Beijing is ramping up fiscal stimulus, with a higher government deficit target and increased infrastructure spending.
“With macro conditions in flux, crypto remains tightly linked to equities, with price action reflecting broader economic shifts,” Singapore-based digital asset trading firm QCP Capital wrote in a recent note.
It pointed to the first-ever White House Crypto Summit to be held on Friday as an additional catalyst spurring investor hopes but warned the mood could shift dramatically—a common hallmark of market activity in recent weeks.
“Without any concrete executive orders, funding commitments, or congressional backing in place, the market remains in wait-and-see mode,” it wrote. “Investors view this as an asymmetric event with high stakes.”
On Wednesday, the White House announced a temporary, one-month exemption from new U.S. tariffs on imports from Mexico and Canada, aimed at giving U.S. automakers time to adjust to the new trade policy.
President Donald Trump told automakers to “start investing, start moving, shift production here to the United States of America where they will pay no tariff,” according to White House press secretary Karoline Leavitt.
Broader markets responded favorably, with the S&P 500 and Dow Jones Industrial Average each rising 1.1%, while the Nasdaq Composite advanced 1.5%.
Lower Treasury yields and softer oil prices also signaled improving financial conditions, further supporting risk assets.
“The tariff talks are driving the dollar, interest rates, and oil lower, easing financial conditions,” Juan Leon, Senior Investment Strategist at Bitwise Asset Management told Decrypt. “On top of that, China just announced more stimulus. All of that is providing ammunition for crypto to rally.”
Leon noted that if trade tensions escalate further, it could spur a wave of global monetary easing, which would likely bolster demand for alternative assets, including crypto.
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
