In a development echoing the classic Wall Street adage “buy the rumor, sell the news,” a decline in Bitcoin (BTC) was observed following the announcement of a temporary trade truce between the U.S. and China.
Following a month of significant gains, profits are being taken by bullish investors after the announcement of a trade truce between the U.S. and China.
Bitcoin had been driven upward since it bottomed just below $75,000 in the days after President Trump’s early April Liberation Day tariff announcement. The $100,000 mark was surpassed late last week following a deal with the UK. However, the major influence came from China, and BTC was pushed close to $106,000 in the early hours of Monday after a weekend agreement between the U.S. and China to pause the majority of tariffs on each other’s goods for 90 days.
At the time of reporting, bitcoin had been reduced to $101,300, reflecting a 3% decline over the previous 24 hours.
Equities Rally Sharply
The adage “buy the rumor, sell the news” has not been reflected in U.S. stock performance today. As the trading session nears its end, a 3.9% gain has been recorded by the Nasdaq, while the S&P 500 has risen by 3.1%.
What’s behind this remains uncertain, but it has been observed that bitcoin’s surge from the April low—exceeding 40% at its peak earlier on Monday—had significantly outpaced the gains seen in major U.S. indexes. Since bitcoin was the more extended asset, the notable underperformance seen today can be viewed as more understandable.
Bitcoin has been regarded as the standout performer thus far, primarily due to its insulation from tariff-related concerns, according to Aurelie Barthere, principal research analyst at Nansen. In light of the recent announcements from Bessent and Greer, a rebound is anticipated by Barthere in altcoins, U.S. equities, and the U.S. dollar—assets that experienced significant underperformance during the first quarter—as overall market conditions begin to stabilize.
Despite the decline observed today, it was pointed out by Kirill Kretov, a trading automation expert at CoinPanel, that the 90-day suspension of tariffs delivered a “clear, short-term positive signal” to market participants. This signal has been seen as beneficial for risk assets such as cryptocurrencies, although renewed challenges may emerge if a more comprehensive agreement is not established once the pause concludes.
It was stated by him that reduced tariffs help alleviate inflationary pressures and enhance global liquidity—factors that are generally favorable for BTC and other digital currencies. However, it was also cautioned that this is only a short-term measure, and increased volatility is expected as the conclusion of the 90-day period draws nearer.
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