After months of tension from a trade war, the US and China have come to a new agreement, sparking activity in the crypto stock market.
Renewal of the US-China Trade Agreement
On June 10, 2025, US and Chinese officials reached an agreement on a new trade deal. US President Donald Trump announced that the agreement has been signed, pending final approval from Chinese President Xi Jinping. Trump stated, 'Our deal with China is done, subject to final approval.' According to the deal, China agreed to ease rare earth restrictions crucial for the US auto manufacturing industry, while the US will relax some tech export limits and allow access for Chinese students to its universities. Additionally, the US will impose a 55% tariff on Chinese goods, while China will impose a 10% tax on American products.
Market Reaction of Crypto Stocks
The US crypto stock market faced a sharp decline as the news of the trade agreement began to fade. Shares of Strategy (MSTR) plummeted by 0.87%, roughly $383.75, and shares of Coinbase (COIN) fell by 5.3% to $244. The S&P 500 dipped by 0.2%, the Dow Jones Industrial Average decreased by 0.5%, and the Nasdaq also experienced a drop of 0.2%.
Partnership Between Coinbase and Circle
The partnership between Coinbase and Circle has evolved significantly. The two companies entered a revenue-sharing agreement deemed predatory by critics, allowing Coinbase to keep 100% of the revenue generated from the minting of Circle's stablecoin USDC on its platform. Outside of Coinbase, the revenue split is 50/50 for USDC. This agreement has become a major revenue driver for Coinbase, with over $60 billion in USDC circulating. Moreover, Coinbase Exchange stands to benefit from Circle’s recent Initial Public Offering (IPO).
The market for crypto stocks remains volatile despite positive news regarding the US-China trade agreement. Investors are likely to monitor developments closely, particularly in light of economic changes.
