Bitcoin’s (BTC) price surged past the $103,000 mark Monday, from bullish momentum that analysts believe may carry the asset toward a new all-time high (ATH). This powerful Bitcoin rally is directly fueled by a joint statement released in Geneva.
The statement confirms the United States (US) and China have agreed to temporarily slash tariffs on each other’s goods. Effective by May 14 for 90 days, US levies on Chinese goods will drop from 145% to 30%, while Chinese duties on US goods will decrease from 125% to 10%.
Cooling US-China Trade Tensions Boost Risk Asset Appeal
This US-China trade agreement aims to cool escalating trade tensions and allow critical time for further negotiations. US Treasury Secretary Scott Bessent highlighted a mutual disinterest from both nations in complete economic decoupling. This suggests a move towards a more stable macroeconomic environment going forward.
Historically, such an easing of geopolitical stress benefits risk assets, and Bitcoin is increasingly viewed as part of that asset class. Though some analysts once speculated Bitcoin was acting as a safe haven asset in times of geopolitical stress, its recent ability to outperform equities signals a broader demand base. This US China tariff reduction news is a key factor for the Bitcoin price above $103k.
Related: Bitcoin Holds Above $103K, But Altcoins Start Fighting Back
Is Bitcoin a Safe Haven or Leading Risk-On Asset After Tariff Deal?
The impact of lower tariffs on crypto market is now a hot topic. In April, following Donald Trump’s tariff announcement, Bitcoin sank to $75,000 before rallying over 27% to close the month at $95,000, outperforming traditional indices like the S&P 500 and Nasdaq.
This divergence sparked debate about whether Bitcoin was benefiting from safe-haven flows or from speculation around its use in tariff avoidance.
Now that the US-China trade deal appears to be taking shape, some expected Bitcoin’s outperformance to fade. However, as noted by crypto analysts like Daan Crypto and Will Clemente on X (Twitter), BTC has continued holding strong, now above $103,000.
$BTC Has outperformed stocks since “Liberation” / Tariff Day on the 2nd of April.
It held up incredibly strong during a sharp sell off on stocks in April.
It then also proceeded to outperform as the markets bounced and tariffs were implemented.
Back then people were wondering… pic.twitter.com/gfvfH80TVP
— Daan Crypto Trades (@DaanCrypto) May 11, 2025
If the asset sustains its momentum even after a formal trade resolution, the safe-haven narrative may be dismissed in favor of Bitcoin being increasingly viewed as a leading risk-on asset.
Bitcoin Price Analysis: What’s Next for BTC After Tariff News & $103K Breach?
The 4-hour chart shows Bitcoin trading at $105,594, well above the $103,000 level. The RSI (Relative Strength Index) is at 69.09—just below overbought territory. Bollinger Bands (BB) are widening, with price action hovering near the upper band at $105,213. This suggests volatility expansion in favor of the bulls.
Source: TradingView
A confirmed breakout above $106,000 could propel BTC toward the psychological barrier at $110,000. This is especially likely if macro sentiment remains favorable due to the US China tariff cuts and if trading volume picks up.
Related: Bitcoin (BTC) Price Prediction for May 13
However, if overbought conditions trigger short-term profit-taking, a retest of the mid-Bollinger Band (around $103,700) is probable as a support level.
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