Bitcoin falls when Trump confirms tariff deals with China

Bitcoin (BTC) and the wider market have experienced minor pullbacks after President Donald Trump announced the finalization of a new tariff arrangement with Chinapending official sign-offs by him and President Xi Jinping.

Trump has announced that the true socially that the agreement will grant a US “55% tariff” on Chinese products, while 10% will be collected on US exports and will ensure China's supply of rare earth magnets.

He also said Washington preserved access for Chinese students at American universities and “the relationship is excellent.” The total market value of crypto assets fell by 2%, while the S&P 500 fell by 0.7%.

Bitcoin fell to a daily low of $108,331 every day after the news, trading at $108,654.87 as of press time. It has dropped by 1.5% over the past 24 hours. In particular, It holds over the $106,900 realised price registered by investors who have purchased the flagship crypto in the last 24 hours.

According to Recent Reports According to GlassNode, the next realized price level is $105,200 for investors holding BTC for more than a month, and $104,900 for investors holding between a week and a month.

Market Read Through

Bitcoin and stocks reflect concerns that even if an early profit within minutes of the post, reducing headline tensions, higher US collections could strain global demand.

According to a memo shared by Bitfinex director at Derivative Jag Kooner, the framework “slightly reduces global uncertainty” when instituted.

However, he said “many of the market uncertainty is already priced.” Kooner expects a short burst of volatility, followed by an average return unless the transaction brings a clear liquidity impulse.

Additionally, he tied the June 11 price action to the morning release of Consumer Price (CPI) data in May, claiming that tariff-related inflation has appeared in headline numbers since last month, and is likely to peak by August.

Kooner believes that CPI is an actual volatility trigger, adding that a 0.1% rise in core prices will consolidate expectations for the easing of the Federal Reserve, “creating a vacuum of over $111,000 for Bitcoin.”

Correlation with the S&P 500

Analysts also noted a 30-day correlation of 0.63 between Bitcoin and the S&P 500, which describes BTC as a “liquidity barometer rather than a volatility hedge.”

This relationship leaves a Bitcoin upside cap while the stock holds a narrow range, but allows BTC to lead when stock prices rise with softer inflation data.

Cooner wrote:

“Without a direct stimulation mechanism, the crypto market is unlikely to see sustained movements rise.”

However, he sees pullbacks as an opportunity to buy as many coins have profits and as they have a light exchange balance. He predicted that the breakouts above $111,000 will be “spot-driven and ETF demand will accelerate as macro regimes shift towards easing.”

With no White House or Chinese government statements supporting Trump's post, investors are now looking at the official transcripts of tariff contracts and the June 12th producer price report on additional macroeconomic directions.

Kooner warned that until detailed documents emerge, the market must balance the risks and constructive tone that high taxation could tighten its financial position in the third quarter.

Finally, he emphasized that traders need to monitor China's policy responses, a supply chain commentary from US retailers, and Capitol Hill's response to the proposed split of obligations.

It is mentioned in this article