- Tariff rollback sparks global rally as U.S. and China ease tensions significantly
- Bitcoin stalls near $103K as macro shift fuels conflicting investor narratives
- Ethereum gains traction with Pectra upgrade and rising long-term institutional interest
The United States and China reached a landmark agreement to temporarily scale back tariffs. This unexpected detente ignited a wave of optimism across global markets. Investors reacted swiftly, sending U.S. equities surging by 3% at the opening bell.
According to QCP Broadcast data, the rollback saw U.S. tariffs on Chinese goods drop sharply from 145% to 30%, while China responded with a reduction of its own from 125% to just 10%. The move signaled a potential thaw in trade tensions, rekindling hopes for a revival in cross-border economic activity.
Macro Optimism Resets Market Sentiment
Consequently, the macro landscape saw a swift recalibration. A stronger dollar and firmer U.S. Treasury yields returned to the spotlight. At the same time, gold, often a safe-haven asset, plunged nearly 3% before recouping some of the losses.
This environment prompted a renewed appetite for risk, particularly in volatility markets. The VIX index slipped to 18, reflecting fading investor anxiety. In the crypto space, volatility selling picked up, with front-end BTC options losing over five volatility points.
However, Bitcoin’s price action remained less conclusive. Initially dipping on the tariff news, BTC stabilized near $103,000. The asset continues to wrestle with its dual identity caught between being a digital hedge and a risk-on proxy. This internal conflict has left Bitcoin in a range-bound state, even as global markets shift toward a more growth-oriented outlook.
Rotation Begins: ETH Gains Traction
Meanwhile, Ethereum is quietly carving out a more coherent narrative. The asset’s steady climb past $2,400 appears to have solid foundations. Notably, options markets show a tilt toward puts rather than calls, suggesting restrained speculation.
Funding rates are neutral, and long-dated options interest is starting to return. This suggests that institutional investors may be positioning for longer-term exposure to ETH.
Moreover, the ongoing rollout of the Pectra upgrade has likely added to investor confidence. Significantly, ETH is beginning to outperform Bitcoin in relative terms. BTC dominance has slipped below 63%, indicating capital rotation into alternative assets. ETH now stands out as a potential allocation anchor in a changing macro landscape.
