Trump Says a Trade Deal With China Could Be Reached Soon as Tariffs Loom and Rare-Earth Talks Continue

By COINOTAG | Publication date: October 2025 | Updated: October 25, 2025

  • Geopolitical risk boosts demand for non-sovereign assets, with Bitcoin acting as a hedge during trade tensions.

  • Liquidity shifts toward top-cap cryptos as macro headlines move markets and traders seek liquid exposure.

  • Regulatory signals and tariff developments influence cross-border token flows and on-chain activity, affecting stablecoins and DeFi.

Crypto market reaction to US-China trade tensions in 2025: volatility and hedging demand shaping Bitcoin and major altcoins as policy signals drive flows. COINOTAG provides timely updates.

What is the crypto market reaction to US-China trade tensions?

The crypto market reaction to US-China trade tensions is driven by policy signals and macro headlines, with Bitcoin and major altcoins showing increased intraday volatility. Traders seek hedges as liquidity shifts toward liquid assets and risk sentiment fluctuates on tariff news.

How does geopolitical risk influence hedging strategies in crypto?

Geopolitical risk tends to push investors toward decentralized, non-sovereign assets as a hedge against policy uncertainty. In 2025, analysts note heightened on-chain activity during tariff spikes and greater use of stablecoins as liquidity buffers. Bitcoin often trades with a store-of-value narrative during risk-off phases, while DeFi liquidity can tighten in response to macro headlines.

Frequently Asked Questions

What is the impact of US-China tariffs on cryptocurrency exchanges in 2025?

Tariffs and trade restrictions can affect cross-border settlement costs, mining energy considerations, and exchange liquidity. These dynamics may widen bid-ask spreads and increase price swings as market depth adjusts to evolving policy signals and risk sentiment.

Is Bitcoin a safe haven during geopolitical tensions?

Bitcoin is frequently described as a decentralized asset that can withstand certain regime-specific pressures, but its price remains tied to broader macro trends. In 2025, Bitcoin has exhibited both safe-haven and cyclical behavior, depending on headline risk, liquidity conditions, and overall market sentiment.

Key Takeaways

  • Geopolitical risk drives crypto volatility: policy signals and tariff news trigger rapid price moves across assets.
  • Hedging shifts toward Bitcoin and liquid assets: investors seek stores of value and liquidity during spikes in uncertainty.
  • On-chain activity responds to macro headlines: stablecoins use and cross-border flows adjust with risk sentiment.

Conclusion

The crypto market remains highly sensitive to US-China policy developments, with Bitcoin and major altcoins reacting to tariff news and supply-chain risk. COINOTAG will continue monitoring official data and expert commentary to provide timely updates as 2025 unfolds, helping readers interpret volatility and identify potential hedges.

Sources (plain text): IMF, World Bank, central bank reports, CoinMarketCap data, Glassnode metrics, industry research notes.

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