TechFlow, May 13 — The United States and China have reached a temporary tariff reduction agreement, with U.S. tariffs on Chinese imports sharply cut from 145% to 30%, while China has reduced tariffs on U.S. goods from 125% to 10%. This breakthrough triggered a sharp rise in risk assets, sending U.S. stocks surging 3% at open.
Gold, as a safe-haven asset, dropped nearly 3% before slightly recovering. Market volatility broadly declined, with the VIX fear index falling to 18, and bitcoin's short-term volatility compressing by over 5 points.
Bitcoin and Ethereum briefly dipped after the tariff announcement but are now stabilizing near $103,000 and $2,400 respectively. Clear signs of market rotation emerged, with Bitcoin's market dominance dropping below 63%, while altcoins such as Ethereum begin outperforming Bitcoin.
Bitcoin continues to waver between its "digital gold" identity and risk-asset characteristics, lacking a clear direction. In contrast, Ethereum shows a clearer upward momentum, breaking above the $2,400 level in line with the rollout of the Pectra upgrade. Increased long-dated options trading flow suggests it may become the next major allocation target in the market.
