Bitcoin saw a major price surge, crossing $105,000, after the news of a 90-day tariff reduction deal between China and the United States. This has filled investors with hope, showing a risk-on sentiment shift in global markets.
Market Response to Tariff Reduction
The deal includes the U.S. lowering its tariffs on Chinese imports from 145% to 30% and China reducing its tariffs on U.S. imports from 125% to 10%. This two-way concession is hoped to reduce the existing trade tensions and promote a more cooperative economic relationship between the two countries.
Following this news, the price of Bitcoin jumped to an intraday high of $105,705, its highest since January. This rise is in line with the overall market trend, as large indices such as the S&P 500 and Nasdaq also posted gains. In contrast, traditional safe-haven assets like gold fell, indicating a shift in investor preference towards riskier assets.
Technical Indicators and Future Outlook
Technical analysis indicates that Bitcoin’s recent price movement has broken above significant resistance levels, and it is likely to continue increasing. Analysts highlight a bullish continuation pattern, with estimates predicting a potential increase towards the $150,000 level, if the current momentum continues.
Furthermore, the overall cryptocurrency market has also experienced heightened activity, with Ethereum and other altcoins also experiencing significant gains. The larger market rally reflects heightened investor confidence in digital currencies as geopolitical conditions continue to improve.
Although the tariff cut is now scheduled for a 90-day duration, the continuous negotiations between China and the U.S. could result in more long-term trade deals. These events could further strengthen market sentiment and enable continued growth in the cryptocurrency market.
Also read: India Busts $700K Crypto Scam Tied to Fake Japanese Exchange, 5 Arrested
