Bitcoin Dips Below $102K Following Trade Truce

Key Points:

Bitcoin (BTC) has fallen below $102,000 after briefly touching $106,000 in previous hours due to a U.S.-China trade deal announcement.
This decline comes after a month of rising prices, starting from a low of just below $75,000.
Analysts suggest that the easing of tariff risks may cause Bitcoin to underperform in the near future.

In light of the age-old Wall Street adage, “buy the rumor, sell the news,” Bitcoin (BTC) has started to decline following the announcement of a warm trade truce between the U.S. and China. The cryptocurrency had been surging since hitting a low of around $75,000 after President Trump’s early April tariff disclosures. Recently, Bitcoin crossed the $100,000 mark for the first time in a month.

Continuing its rally, Bitcoin almost hit $106,000 early Monday after the two nations announced a suspension of tariffs on mutual goods for a duration of 90 days.

At the time of this report, Bitcoin was trading at approximately $101,300, resulting in a 3% decrease over the preceding 24 hours.

Stock Markets Reaction

In contrast, U.S. stock markets were in the green, with the Nasdaq rallying by 3.9% and the S&P 500 up by about 3.1% before market close.

Analysts speculate that the substantial rally in Bitcoin over the last month — with gains exceeding 40% at its peak earlier on Monday — might have overstretched compared to U.S. equities.

Aurelie Barthere, a principal analyst at Nansen, indicated, _“Bitcoin has clearly outperformed recently, as it is shielded from tariff-related risks. Following Bessent and Greer announcements, I expect altcoins and U.S. equities to rebound as the broader market dynamics improve.”

Kirill Kretov from CoinPanel also mentioned that the ongoing trade truce signals a short-term positive outlook for assets including cryptocurrencies, though market volatility is likely to return as the temporary suspension nears its end. He noted, “Lower tariffs alleviate inflation levels and enhance global liquidity, both generally favorable conditions for BTC and similar cryptocurrencies.”