Crypto Market Surges as Trump Hints at China Negotiations – Bull Trap Ahead?

The crypto market has started this week with a boom as Bitcoin price surged above $87,000. However, the market volatilities are far from being over as the negotiations between the United States and China continue. These negotiations come as the tariffs between the two countries have surged to unseen levels. Donald Trump has commented on this development and stated that China has been eager to negotiate. The Trump crypto effect can’t be denied, as he has wiped out and added trillions to the market with just comments. As such, the market will closely monitor the developments between him and China. 

Are Trump’s Tariffs Boosting Bitcoin Price?

As the market experienced uncertainty about Trump tariffs over the past week, various assets showed mixed performances. In the crypto market, we saw a weekly increase in BTC value while top altcoins lost some of their value. For instance, ETH, ADA, and XRP all experienced moderate losses over the last week. Additionally, the stock market also mirrored this confusion as the S&P 500 gained nearly 0.52% in value. However, the Nasdaq composite and Dow Jones both fell, while the Russell 2000 experienced gains. The gold market grew as it gained nearly 3.8% of value against the US Dollar.

Many have criticized Trump’s tariffs for causing such chaos and disarray in the economic world. However, he has recently commented on people who criticize his tariff policy and said they are effectively confessing a lack of financial wisdom. He also said that his critics have no business sense or political knowledge of his Truth Social post. He also commented on the talks between the USA and China regarding the trade war. “Yeah, we’re talking to China. I would say they have reached out a number of times.” He also hinted that the president of China, Xi Jinping, has personally reached out to him. 

Is Trump’s Tariff War the Next Recession Trigger?

On the other hand, Trump critics have warned that the tariff policy can create the next recession. This is because they believe these tariffs will increase the cost of goods for both businesses and customers. It is also mentioned that this will cause more unemployment and reduced pay. However, Trump and his supporters believe that with this policy, more domestic jobs will be created, and domestic manufacturers will prosper. Additionally, till now, Trump tariff policy has not had a positive impact on the crypto market. The bearish effect of his policies has been seen multiple times, as each tariff announcement crashes the market. 

Has Trump Accidentally Become Bitcoin’s Biggest Bull?

Despite the continuing trade war, the price of Bitcoin has been surging today, which can be a sign of investor confidence. Additionally, this could be the result of Trump’s comments on the eagerness of China for negotiations. Nonetheless, BTC started below $84K and hit a high of $87,774 today. However, since then, the value has fallen to near the $87K level. 

Chart 1 – BTC/USD Daily chart, published on TradingView, April 21, 2025

Based on Chart 1, the price of Bitcoin has started falling now, signaling a correction. This can also be seen in the sharp fall of RSI, which had entered the overbought zone before. The ADX is still going up, signaling that the strength of the bearish trend is high and that sellers have dominance now. 

Could a Trump Crash Bitcoin Again?

As such, the Bitcoin price and other cryptocurrencies experienced a surge today, but they are now experiencing a pullback. For the mid-term price, investors should keep monitoring the news updates related to the trade war. Additionally, the Trump crypto comments will affect the crypto market as well.