Bitcoin surged to a brand new all-time excessive after a short lived commerce settlement between the US and China eased macroeconomic fears and boosted investor confidence.
Bitcoin (BTC) set a brand new excessive of $109,400 on Could 21, rising greater than 26% previously month, based on knowledge from TradingView. This climb to a report excessive got here 9 days after the White Home announced a 90-day commerce settlement between the US and China on Could 12, quickly slashing import tariffs to 10%.
The 90-day tariff suspension and the cooperative tone in negotiations eliminated the danger of “sudden re-escalation,” which had a big affect on danger urge for food amongst conventional and cryptocurrency buyers, Aurelie Barthere, principal analysis analyst at crypto intelligence platform Nansen, instructed Cointelegraph.
US President Donald Trump’s reciprocal tariffs have been seen as the most important macroeconomic menace to conventional equities and cryptocurrency markets in 2025.
Bitcoin briefly fell to a year-to-date low of $74,434 on April 7, 5 days after Trump introduced his reciprocal import tariffs on April 2, sending shockwaves throughout international markets, with the S&P 500 losing more than $5 trillion in worth, its largest drop thus far.
Bitcoin began its restoration on April 9 after Trump’s Liberation Day marked the “climax of uncertainty” for market contributors, Michaël van de Poppe, founding father of MN Consultancy, instructed Cointelegraph on the time.
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Bitcoin entered Could with “near-flawless setup”
Bitcoin kicked off Could with a “near-flawless setup, catalyzed by a uncommon alignment of geopolitical de-escalation, enhancing regulatory optics and macroeconomic tailwinds,” based on Jag Kooner, head of derivatives at Bitfinex change.
“The Russia–Ukraine ceasefire talks have defused one of many main geopolitical volatility engines of the previous two years,” Kooner instructed Cointelegraph, including:
“Somewhat than triggering capital flight from Bitcoin — as usually seen when danger wanes — this easing is unlocking a risk-on rotation. We’re seeing capital rotate into BTC and high-beta tech as the necessity for geopolitical hedging fades, however liquidity stays considerable.”
The capital rotation displays a “maturing narrative” as “Bitcoin is now not only a worry hedge — it’s more and more a high-conviction danger asset in durations of macro stability,” Kooner stated.
Russia and Ukraine “will instantly begin negotiations in direction of a Ceasefire and, extra importantly, an END to the Warfare,” Trump stated in a Could 19 X submit, summarizing his two-hour name with Russian President Vladimir Putin.
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Nonetheless, funding charges want to stay impartial and open curiosity steady for a “consecutive setup” that will ignite a Bitcoin rally to above $114,000 to $120,000, which can be catalyzed by any “macro or regulatory spark,” Kooner stated.
Different analysts have predicted a Bitcoin rally to above $130,000 earlier than the top of 2025, based mostly on BTC’s shut correlation with the worldwide cash provide.
The growing cash provide could push Bitcoin’s price above $132,000 earlier than the top of the 12 months, as investor demand is pushed by the rising fiat cash debasement, predicted Jamie Coutts, chief crypto analyst at Actual Imaginative and prescient.
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