Bitcoin Approaches Record High of $109K as U.S. and China Reach Trade Agreement
Trade Agreement Details
China announced that it will release a joint statement with the U.S. regarding the outcomes of recent negotiations.
Key Takeaways:
- Bitcoin is set to reach unprecedented high prices as improving U.S.-China relations and a potential drop in Consumer Price Index (CPI) may fuel the market.
- Bitcoin, along with significant altcoins such as Ether and DOGE, has seen substantial gains, bolstered by consistent inflows into Exchange-Traded Funds (ETFs) and stable market conditions.
Bitcoin (BTC) is poised to hit record pricing, hovering around $103,988.96, driven by thawing U.S.-China trade tensions. These changes could influence market responses to the impending CPI slowdown due for release this week.
The United States has secured a trade agreement with China following two days of high-level discussions in Geneva, as communicated by U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. A joint statement from both nations on the Geneva talks is expected later today.
This trade agreement came after weeks of escalated tensions that saw both countries significantly increasing import tariffs, raising inflation concerns globally. Investors largely dismissed favorable inflation data released last month as lagging amidst rising trade issues.
Fortunately for Bitcoin enthusiasts, this new trade agreement may shift the narrative positively away from bearish sentiments.
Anticipated moderate CPI figures could boost expectations for a Fed rate cut, acting as a bullish catalyst for Bitcoin to possibly surpass $110,000. Conversely, unexpectedly high CPI figures might be perceived as outdated, reflecting previous tariffs while neglecting the latest de-escalation in trade relations.
Upcoming inflation data is expected to show a year-on-year cost of living increase of 2.3% for April, down from March’s 2.4%. The core CPI, excluding volatile food and energy prices, is predicted to remain steady at 2.8%.
If these expectations are met, the market could interpret the inflation report positively. As stated by Markus Thielen, founder of 10x Research, “CPI could be bullish, and may bring new all-time highs.”
With BTC trading around $104,000, it’s just a 5.1% away from its peak of $109,350. Since early April, Bitcoin has seen a dramatic uptick from $75,000, marking a 10% rise last week supported by continued inflows into ETFs.
BlackRock’s Bitcoin ETF has seen sustained inflows for twenty trading days, accumulating over $5 billion in investments. Recently, the Federal Reserve decided to maintain the benchmark borrowing cost in the 4.25% to 4.5% range while reiterating its data-dependent approach.
Ether, accounting for the second highest market value, surged 39% recently, reflecting dynamic market conditions driven by investor optimism.
