Breaking news from China and the US! Trump "freezes" export controls on China, tariff benefits stimulate Bitcoin to rebound to $119,000.

Bitcoin (BTC) rose to around $119,550 today (28) during the Asian midday session. According to reports from British media, U.S. President Trump “froze” export controls against China, and the positive impact of tariffs provided support for buying Crypto Assets.

The British Financial Times reported, citing informed sources, that the United States has frozen restrictions on technology exports to China to avoid harming trade negotiations with Beijing and to assist President Donald Trump in securing a meeting with President Xi Jinping this year.

According to eight people, including current and former U.S. officials, the U.S. Department of Commerce’s Bureau of Industry and Security, responsible for export controls, has been advised in recent months to avoid taking a hardline approach against China.

Following the talks in Geneva and London, American and Chinese officials will hold the third round of trade negotiations in Stockholm on Monday.

Although Trump hopes to avoid actions that could undermine efforts to meet with Xi Jinping, some officials believe that the United States is constrained in export controls, as China may take retaliatory measures to restrict exports of critical rare earths and magnets to the U.S., similar to what China did for the first time in May.

Earlier this year, Trump was preparing to restrict technology exports to China. In April, his team informed NVIDIA that they would block the export of its H20 chip. This chip was specifically designed for the Chinese market after the Biden administration restricted more advanced chips. However, under the direct lobbying of NVIDIA CEO Jensen Huang, Trump changed his stance.

H20 has become the focal point of debate between security officials and Nvidia. Security officials claim that the chip will assist the Chinese military; while Nvidia argues that blocking the export of American technology will force Chinese companies to accelerate innovation.

Bitcoin Price Analysis

FXEmpire analyst Bob Mason stated that the recent price outlook depends on several potential price catalysts. These include:

1. Progress of the CLARITY Act in Congress

2. The position of the U.S. Presidential Task Force on BTC as a strategic reserve asset.

3. Federal Reserve interest rate decision and policy outlook

4. BTC spot ETF liquidity

Possible scenarios for Bitcoin’s trend:

Bearish scenario: Legislative barriers, US government advises against hoarding BTC, Federal Reserve’s tough rhetoric, outflow of ETF funds. The combined effect of these factors may push BTC to $115,000 and potentially touch the 50-day Exponential Moving Average (EMA).

Bullish Scenario: Both parties support the cryptocurrency bill, suggesting an increase in US BTC reserves, the Federal Reserve hints at a dovish stance, and ETF fund inflows. Under these circumstances, the price of BTC could reach a historical high of $122,057.

(Source: Trading View)