Bitcoin and Ethereum Rally

Bitcoin and Ethereum extended their gains on Wednesday, rising alongside broader financial markets as investors reacted to easing trade concerns and China’s efforts to stabilize its economy.

Recent Performance

Bitcoin climbed 5% over the past 24 hours, nearing $92,000, and added to a 9% gain over the past week. Ethereum rose 4.7% to $2,285, according to CoinGecko data.

The rally comes as traders assess potential economic fallout from escalating U.S.-China trade tensions, prompting Beijing to announce additional stimulus measures at the opening of the National People’s Congress.

Chinese Premier Li Qiang acknowledged external pressures facing China, stating that the “increasingly complex and severe external environment may exert a greater impact on China in areas such as trade, science, and technology.”

Chinese Stimulus Measures

To counteract economic challenges, Beijing is ramping up fiscal stimulus with a higher government deficit target and increased infrastructure spending.

QCP Capital, a Singapore-based digital asset trading firm, noted that “crypto remains tightly linked to equities, with price action reflecting broader economic shifts.” They pointed to the upcoming White House Crypto Summit as a potential catalyst but warned of a possible dramatic mood shift.

“Without any concrete executive orders, funding commitments, or congressional backing, the market remains in wait-and-see mode,” they wrote. “Investors view this as an asymmetric event with high stakes.”

U.S. Trade News

On Wednesday, the White House announced a one-month exemption from new U.S. tariffs on imports from Mexico and Canada, allowing automakers time to adjust. President Donald Trump encouraged automakers to invest in the U.S., stating they would pay no tariffs there.

Broader markets responded positively, with the S&P 500 and Dow Jones Industrial Average rising 1.1%, and the Nasdaq Composite advancing 1.5%.

Lower Treasury yields and softer oil prices indicated improving financial conditions, supporting risk assets.

Juan Leon, Senior Investment Strategist at Bitwise Asset Management, stated that “the tariff talks are driving the dollar, interest rates, and oil lower, easing financial conditions.” He added that China’s stimulus announcement is providing momentum for crypto’s rally.

Leon also noted that further trade tensions could spur global monetary easing, likely bolstering demand for alternative assets, including cryptocurrencies.