Bitcoin rallies on US-China trade deal optimism and stock market downturn

Date:

It was reported that Bitcoin had outperformed equities and exhibited an upward trajectory during last month’s stock market sell-off, which followed the announcement of tariffs by U.S. President Donald Trump on Liberation Day.

After experiencing a decline to $75,000 on April 7, a rebound to $95,000 was recorded for the leading cryptocurrency, marking a 27% increase by the close of April. Meanwhile, indices like the S&P 500 and Nasdaq registered declines during the same period.

Attention was drawn to the situation by cryptocurrency trader Daan Crypto, who remarked, “At that moment, speculation arose over whether Bitcoin’s relative strength was driven by the idea that nations were leveraging Bitcoin to bypass tariffs.”

He further stated that, if trade uncertainty had been the primary reason behind Bitcoin’s outperformance, such momentum would likely be halted once a major agreement, particularly one involving China, was finalized.

Analysts Attribute Bitcoin’s Surge to Ongoing Trade Uncertainty

The progress of a trade agreement between the United States and China was confirmed by the White House on May 11, though no formal deal was made public. U.S. Treasury Secretary Scott Bessent stated that the discussions had been productive and that additional details would be shared at a later time.

Further analysis was provided by Daan, who noted that continued outperformance by BTC could indicate a direct influence of tariffs on Bitcoin’s adoption. Meanwhile, other analysts have proposed that Bitcoin is likely to experience a surge if the trade agreement endures, particularly in the context of potential interest rate reductions.

It was reported by Jupiter Zheng, a researcher at HashKey Capital, that the establishment of a trade agreement between the United States and China could introduce greater stability to global markets, potentially encouraging investors to seek growth opportunities and allocate funds into alternative assets.

Additionally, a new all-time high for BTC could be reached, particularly if the trade agreement leads to a weakened dollar or prompts renewed liquidity inflows into emerging markets. It was also noted by analyst Will Clemente that the current momentum can be sustained only through a strong and definitive trade deal announcement.

Marton K.
Marton K.https://thecoingraph.com
Marton is seasoned crypto and finance journalist with over four years of experience. He has contributed to several high-profile outlets.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related

Norway considers Crypto Mining ban despite surge in local Bitcoin investments

Norwegian companies have significantly increased their Bitcoin holdings, creating...

Coinbase obtains MiCA license and launches european headquarters in luxembourg

Coinbase officially obtained the MiCA license in Luxembourg, gaining...

Solana reports 3,200 active developers, surpasses $1B in app revenue for second consecutive quarter

Solana (SOL) has continued to experience high levels of...

Hedge fund execs voice concerns over Bitcoin’s future in post-Trump Era: Eric Semler

Eric Semler embraces his role as the “lone voice...