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For cryptocurrency enthusiasts, recent tariffs have a more significant impact than industry advancements. Fluctuations of thousands of dollars are driven by tariff developments, becoming the primary focus in the crypto space. Over the past six months, investors have incurred losses due to tariff-related announcements. But what can be gleaned from the London discussions?
US-China Agreement
Although no signatures have been made yet, Trump indicated a promising agreement. The London process serves as an opportunity for normalization with China. Informed sources suggest that China might make the anticipated move on rare earth elements. However, export licenses will be subject to a six-month restriction. This means that uncertainties for American industry giants have not been entirely removed, and China seems keen on maintaining leverage.
So, what will the US do in return? It will continue sending parts related to jet engines and products such as ethane, which play a crucial role in plastics production, to China. Previously, the US had decided to impose restrictions on these items.
As a result of the London process, China will promptly approve licenses for rare earth elements to US companies. Expectations are that the process will conclude within a week.
The delay in the rare earth elements license, agreed upon in the Geneva meeting, has been resolved. Meanwhile, the US easing its restrictions can be seen as an effort from both parties to “navigate the process with minimal losses.” Despite China potentially using license renewals as leverage in six months, such balancing nuances are not necessarily detrimental for maintaining amicable relations between parties.
Effects on Cryptocurrencies
The US has expressed optimism about the China deal. China, although delayed, is expected to soften its tone, emphasizing the importance of mutual cooperation in its statement. The absence of escalating tensions and potential consensus is already evident in cryptocurrency charts. With signatures and licenses expected within a week, reduced uncertainties could lead to greater profits.
Bitcoin (BTC) 
$105,739 is currently lingering around the $110,000 mark, aiming for its all-time high of $112,000. With agreements nearing conclusion with trade partners like India and Japan, the more signatures we witness in the next 15 days, the better. Cryptocurrencies, especially altcoins, could experience relief rallies following months of intense pressure, leading to upward trends.
