Bitcoin and Ethereum Surge as US-China Trade Tensions Ease, Says Tom Lee

Permabull investor Tom Lee predicts that easing trade tensions between the US and China could spark a rally for Bitcoin (BTC), Ethereum (ETH), and US equities. His outlook follows renewed optimism after both nations showed signs of compromise in their economic standoff.

Bitcoin climbed to an intraday high of $113,851 on Sunday, according to CoinGecko, while Ethereum nearly reclaimed the $4,100 mark. The upward momentum comes as investors respond positively to signs of de-escalation between the world’s two largest economies.

Earlier this month, global markets were shaken when the White House announced 100% tariffs on Chinese goods, triggering a massive liquidation of over $19 billion in crypto positions within 24 hours — the largest in history. However, reports from the ASEAN summit in Malaysia suggest that tensions are easing. The Washington Post revealed that the US agreed to delay tariffs, while China postponed planned restrictions on rare earth exports for a year. These moves have fueled optimism about a potential US-China trade deal in the near future.

Adding to the bullish sentiment, 10x Research noted that weaker-than-expected inflation data has revived hopes for Federal Reserve rate cuts, which typically benefit risk assets like cryptocurrencies. Despite the optimism, Bitcoin remains below its 30-day moving average, signaling that short-term caution may still be warranted. BTC is currently down about 10% from its record high of $126,080, reached earlier this month.

Still, market analysts like Tom Lee believe that improving macroeconomic conditions and easing geopolitical risks could set the stage for another crypto rally, reinforcing investor confidence across digital assets and traditional markets alike.