Bitcoin is inching closer to reaching a new peak as excitement builds over the completion of a trade agreement between the United States and China. This optimism was fueled by a statement from US President Donald Trump on his social media platform, Truth Social, where he declared that the deal is essentially finalized, pending approval from Chinese President Xi Jinping. Trump specified, 'We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent.'
In the immediate aftermath of the announcement, Bitcoin's price surged to a 24-hour high of nearly $110,300 before settling at $109,560, according to TradingView data. Nexo dispatch analyst Iliya Kalchev mentioned that Wall Street futures showed only a slight dip following the news, indicating cautious optimism rather than outright exuberance.
Adding to the rising sentiment, Global Macro Investor founder Raoul Pal noted that the bulk of tariff discussions seem aimed at persuading China to finalize the deal, with potential more posturing ahead.
On the Chinese side, Vice Commerce Minister Li Chenggang confirmed that the two countries reached a preliminary agreement to address trade issues through mutual cooperation, following recent talks in London. This development injects a degree of optimism into the markets, potentially alleviating fears tied to reciprocal tariffs that were seen as substantial threats to both traditional markets and the crypto space alike. This reflected in Bitcoin's fall to a low of $74,434 earlier this year, coinciding with the announcement of import tariffs that led to notable sell-offs in the stock market. The S&P 500 lost over $5 trillion during that turbulent period.
Aurelie Barthere, a principal research analyst at Nansen, observed that uncertainty around tariffs has diminished VC interest in crypto projects, leading to a drop in investment rounds this year. With confidence in the crypto realm appearing to shift positively, the implications for everyday investors are significant as potential gains may abound with Bitcoin's climb. Investors should monitor these developments closely, considering how economic policies can sway market sentiments and decisions moving forward.
In the immediate aftermath of the announcement, Bitcoin's price surged to a 24-hour high of nearly $110,300 before settling at $109,560, according to TradingView data. Nexo dispatch analyst Iliya Kalchev mentioned that Wall Street futures showed only a slight dip following the news, indicating cautious optimism rather than outright exuberance.
Adding to the rising sentiment, Global Macro Investor founder Raoul Pal noted that the bulk of tariff discussions seem aimed at persuading China to finalize the deal, with potential more posturing ahead.
On the Chinese side, Vice Commerce Minister Li Chenggang confirmed that the two countries reached a preliminary agreement to address trade issues through mutual cooperation, following recent talks in London. This development injects a degree of optimism into the markets, potentially alleviating fears tied to reciprocal tariffs that were seen as substantial threats to both traditional markets and the crypto space alike. This reflected in Bitcoin's fall to a low of $74,434 earlier this year, coinciding with the announcement of import tariffs that led to notable sell-offs in the stock market. The S&P 500 lost over $5 trillion during that turbulent period.
Aurelie Barthere, a principal research analyst at Nansen, observed that uncertainty around tariffs has diminished VC interest in crypto projects, leading to a drop in investment rounds this year. With confidence in the crypto realm appearing to shift positively, the implications for everyday investors are significant as potential gains may abound with Bitcoin's climb. Investors should monitor these developments closely, considering how economic policies can sway market sentiments and decisions moving forward.
