- The trade talks between the USA and China in London have a positive effect on the cryptom market-at least the XRP turnover rose by almost 60 percent.
- Delivery of rare earths and export controls are the central theme in the discussions. The US economy data for May will also affect the crypto industry.
The trade talks between the United States and China were resumed on June 9 in London. The talks are intended to reduce tensions in connection with exports less frequently and trade restrictions in the technology area.
The financial markets, including cryptocurrencies, reacted to the result of the meeting. The XRP turnover increased 58%because the entire cryptom market experienced a rally in the run-up to the publication of the US economy data for May last week.
London talks focus on rare earths and export controls
The highly doped trade talks between the USA and China started at 1:30 p.m. local time at the Lancaster House in London. According to CNBC, Kevin Hassett from the National Economic Council of the White House said that the United States was willing to lift some export restrictions in the technology area when China resumes the deliveries of rare earth. However, he made it clear that this would not affect Nvidia’s high-end H2O chips that are used for AI training.
Finance Minister Scott Bessent, Minister of Commerce Howard Lutnick and the trade officer Jamieson Greer belong to the US team. China’s team is led by Vice
Vice Prime Minister He Lifeng. The presence of Lutnick, who was not present in previous Geneva talks, shows the growing importance of technical controls during the talks. Loud Bloomberg the talks between the USA and China could last until Tuesday.
Trump’s government expects China to release rare earths “in large quantities” when the United States loosens the export rules, Hassett told reporters. However, the United States will maintain the restrictions for advanced semiconductors used in the AI. These rare earths are of crucial importance for defense, aerospace and electric vehicles, and China’s recent restrictions have burdened the global supply chains.
A phone call between President Donald Trump and President Xi Jinping a few days before the London talks contributed to reviving the dialogue. Trump said the talks would “go very well” and was confident that the progress of the previous Geneva agreement, which the tariffs temporarily lowered for 90 days, would be continued.
Market reacts to declining tensions – cryptocurrencies in the upswing
The stock and cryptoma markets reacted to the conversations between the USA and China. Chinese stocks in Hong Kong experienced a housesee, and the US indices recorded slight profits when the trading mood fluctuates. In the conversations, the investors saw a turning point after months of tariffs and interruptions of the supply chains.
XRP recorded an increase in the commercial volume by up to 98 %, since the cryptom market recovered in the past three days. Loud Coinmarketcap Now noted XRP at $ 2.26, with a 24-hour trading volume of $ 2.59 billion.
The market capitalization of the token amounts to over $ 132.6 billion, which means that it is in fourth place in cryptocurrencies. Ethereum rose by 6 %, while Bitcoin remained at $ 107,663 and headed to $ 112,000.
The crypto rally was fueled by the optimism of the US labor market report and the trade talks, but the dealers are careful. The report on the US consumer price index (CPI) is scheduled on Wednesday.
According to a Bloomberg survey Could the inflation in May rose due to tariffs. A higher VPI, which was fancy than expected, could tip the mood and trigger a downward movement, especially in cryptocurrencies.
Meanwhile, the US dollar weakened the most important currencies because investors expected the results of the talks. The oil prices remained relatively stable.
Diplomatic complications
Despite the Geneva agreement from last month, the USA accused the USA China to delay the delivery of processed rare earths. Josh Lipsky from the Atlantic Council says that many parts of the agreement are unclear, in particular the licensing and export permits. He says the goal in London is to consolidate these conditions so that there are no misinterpretations.
The United Kingdom does not take part in the main talks between the United States and China, but will have separate trade talks with the Chinese delegation over the course of this week. A spokesman for the British government said the United Kingdom wanted to avoid a trade war and referred to the far -reaching effects on world trade.
Trump’s earlier tariffs introduced as part of the “Liberation Day Ordinance” triggered an economic slowdown and affected both countries. The latest Chinese export data showed the strongest decline in deliveries to the United States for five years.
In contrast, employment growth in the United States weakened in May, with the previous months being corrected downwards. The manufacturers, especially in the Midwest, reported delays in investments and operating processes due to political uncertainty.
Lutnick’s admission indicates that the United States could loosen controls for technology exports such as engine components and older semiconductors. However, such a step would not remove the restrictions on state-of-the-art AI chips.
Beijing has an impact on rare earths that are important for many US industries. Trump has often withdrawn at trade threats at the last minute and thus ensured uncertainty worldwide.
While the talks between the USA and China continue, investors are waiting for news that redefines bilateral trade and will affect the global markets, especially on sectors that depend on important minerals and top technology.
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