A 90-day tariff agreement between the US and China may set the stage for a broader recovery of stock and cryptocurrency markets, as investors look ahead to a potential tax relief package.

The White House announced on May 12 that the two countries will reduce their respective tariffs to 10% for an initial 90-day period beginning May 14 — a 24% cut from current levels.

Speaking at a news conference in Geneva, US Treasury Secretary Scott Bessent said both governments are aligned on avoiding further economic decoupling.

“The consensus from both delegations is neither side wants to be decoupled,” Bessent said. “What has occurred with these very high tariffs was an equivalent of an embargo, and neither side wants that. We do want trade. We want more balance in trade.”

Joint statement on US-China meeting in Geneva. Source: The White House

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The constructive tone of the negotiations, along with the 90-day suspension of additional tariffs, removes the risk of “sudden re-escalation,” which may help altcoins and traditional stock markets follow Bitcoin’s (BTC) price recovery, according to Aurelie Barthere, principal research analyst at crypto intelligence platform Nansen.

“Bitcoin is already trading close to its all-time highs,” Barthere told Cointelegraph. “However, with the latest easing in trade tensions, it now appears that altcoins, US equities, and the US Dollar Index (DXY) are well-positioned for a catch-up rally.”

She noted that Bitcoin has outperformed risk assets in recent months due to its insulation from tariff-related risks.

“I also expect the US dollar to perform strongly against prior safe-haven currencies such as the euro, Swiss franc and Japanese yen, reflecting improved global risk sentiment,” Barthere added.

Nansen previously predicted a 70% chance for crypto and stocks to find their bottom by June, with their price recovery depending on the outcome of trade negotiations.

Related: Bitcoin ETFs, gov’t adoption to drive BTC to $1M by 2029: Finance Redefined

Tax relief could amplify rally

Bitcoin is currently 4.8% away from recapturing its all-time high of over $109,800 recorded in January 2025, Cointelegraph Markets Pro data shows.

BTC/USD, 1-year chart. Source: Cointelegraph

“There is potential for risk assets to move beyond the January peak levels if we see a generous tax cut package materialize,” Barthere told Cointelegraph, adding:

“This would need to go beyond merely extending the expiring tax cuts, and include additional income tax reductions as well as corporate tax cuts on top.”

She noted that Bessent hinted such a package could be unveiled by mid-July, which would act as a “significant additional catalyst” for the markets.

The constructive trade negotiations, paired with emerging technical chart patterns, have spurred analyst calls for a Bitcoin rally to $150,000, depending on the outcome of an emerging bull flag pattern on the weekly chart.

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Bitcoin mining firm American Bitcoin is going public through a merger with crypto mining firm Gryphon Digital Mining, the companies announced on May 12.

Under the terms of the deal, Gryphon Digital Mining will acquire American Bitcoin in a stock-for-stock transaction. After the merger, the new company will operate under the American Bitcoin brand and be led by its board of directors, which includes Eric Trump, son of US President Donald Trump.

News of the merger coincided with a sharp rise in Graphon Digital Mining’s stock price, which climbed from $0.52 on May 9 to $2.15 at the time of writing, a gain of more than 313%, according to Google Finance.

The announcement follows early April reports that American Bitcoin was considering an initial public offering (IPO).

Gryphon Digital Mining share price. Source: Google Finance

American Bitcoin is a majority-owned subsidiary of energy infrastructure, crypto mining, and data center firm Hut 8. Hut 8 CEO Asher Genoot said the company aims to make American Bitcoin “a purpose-built vehicle for low-cost Bitcoin accumulation at scale.” He added:

“By taking American Bitcoin public, we expect to unlock direct access to dedicated growth capital independent of Hut 8’s balance sheet, while preserving long-term exposure to Bitcoin upside for our shareholders.”

Related: Top Bitcoin miners produced nearly $800M of BTC in Q1 2025

Shareholders and post-merger structure

According to the announcement, existing American Bitcoin shareholders will own roughly 98% of the newly formed company. Following the transaction, the new company will control most of the outstanding stock.

Hut 8 will continue to manage American Bitcoin’s infrastructure and operations through long-term commercial agreements. Those deals are expected, according to the announcement, to generate stable, contracted revenue streams for Hut 8’s power and digital infrastructure segments.

Related: Bitcoin miner Hut 8 grows hashrate 79% despite $134M quarterly loss

What is American Bitcoin?

Hut 8 acquired a majority stake in American Bitcoin when it was unveiled at the end of March, with backing from several members of Trump’s family. The company, formerly known as American Data Center, was founded by a group of investors, including Trump’s sons, Donald Trump Jr. and Eric Trump.

Following the deal, American Bitcoin took ownership of Hut 8’s Bitcoin mining hardware. The announcement at the time explained that the new firm “aims to become the world’s largest, most efficient pure-play Bitcoin miner while building a robust strategic Bitcoin reserve.”

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The creator of the non-fungible token (NFT) collection DeGods announced that he has stepped down as the CEO of the project amid an uptick in sales. 

Rohun Vora, known online as “Frank DeGods” on X, said he has stepped down as the project’s CEO, concluding a three-year stint as the head of one of the most popular Solana-based NFT collections. 

He identified pseudonymous figures 0x_chill and Pastagotsauce as the new leaders of DeGods. “There are no investigations, because I have never done anything illegal. That’s the boring truth,” Vora wrote, addressing speculation about his departure.  

The announcement came as the NFT collection started gaining traction on the Ethereum and Solana blockchains. 

Source: Frankdegods

DeGods’ sales are up 101% on Solana

Data tracker CryptoSlam shows that in the last seven days, DeGods NFTs have seen a significant increase in sales. 

On May 12, DeGods on Solana recorded a sales volume of around $458,000, a 101% increase over the previous week. In the last 30 days, the collection had a sales volume of $1.1 million for its NFTs based on the Solana network. 

On Ethereum, the DeGods collection recorded $104,000 in sales for the past week, a 156% growth over the previous seven days. In the last 30 days, the collection recorded over $250,000 in sales, a 323% increase in sales volumes. 

Following the announcement, new DeGods project lead Pasta shared plans to release a tribute to the project’s three-year history and teased a shift in strategy.

Pasta also hinted that there will be changes in the project’s approach. “Our job isn’t to build crypto products. It’s to make DeGods as big as it can possibly be. That’s what you want. That’s what we want too. So that’s exactly what we’re gonna do,” Pasta wrote. 

Source: Pastagotsauce

Related: Doodles NFT sales surge 97% ahead of DOOD token airdrop

NFT sales are up by 17% in the last seven days

Meanwhile, the broader NFT market has also gained traction in the last seven days. CryptoSlam data shows that from May 6 to 12, NFTs recorded a sales volume of over $120 million, a 17% increase over the previous week. 

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