Bitcoin News: Bitcoin and Altcoins Poised to Rally on U.S.–China Tariff Deal and Tax Relief Hopes

90-day tariff rollback and easing trade tensions set the stage for risk asset breakout, say analystsThe recent U.S.–China tariff agreement, which includes a 90-day reduction in tariffs, is boosting investor confidence across cryptocurrency and stock markets. Analysts say the constructive tone of trade negotiations removes the risk of a sudden re-escalation, paving the way for Bitcoin, altcoins, and U.S. equities to potentially surpass their January 2025 highs.Key Highlights:U.S. and China agree to reduce tariffs to 10% for 90 days, starting May 14Bitcoin (BTC) trades near $103,918, just 4.8% below its all-time highAnalysts say altcoins, equities, and DXY may rally as risk sentiment improvesA potential tax relief package could act as a second catalyst by mid-JulyA bull flag pattern on Bitcoin’s chart hints at a rally toward $150,000Constructive Trade Deal Sparks Global Risk-On SentimentAt a press conference in Geneva, U.S. Treasury Secretary Scott Bessent confirmed the deal, noting both countries are committed to avoiding economic decoupling.“What has occurred with these very high tariffs was an equivalent of an embargo. Neither side wants that,” Bessent said. “We want more balanced trade.”The 24% reduction in tariffs, set to take effect May 14, helps remove one of the key macroeconomic risks hanging over markets since early 2024.Bitcoin Leads the Recovery as Altcoins and Equities FollowAccording to Aurelie Barthere, principal research analyst at Nansen, Bitcoin has already outpaced traditional risk assets due to its resilience against tariff shocks. However, she believes altcoins, stocks, and the U.S. Dollar Index (DXY) are now well-positioned for a catch-up rally.“With easing trade tensions, altcoins and U.S. equities may close the performance gap with Bitcoin,” Barthere told Cointelegraph.Tax Cuts Could Accelerate the RallyBarthere noted that further upside could come if the U.S. unveils a generous tax relief package by mid-July, including:Expanded income tax cutsNew corporate tax reductionsBeyond-extension of expiring tax provisionsShe emphasized this would act as a “significant additional catalyst” for both crypto and equity markets.Technical Outlook: $150K Bitcoin in Sight?Analysts are closely watching Bitcoin’s weekly chart, which appears to be forming a bull flag—a continuation pattern that, if confirmed, could trigger a breakout toward the $150,000 level in the coming weeks.