Bitcoin is nearing a new high, fueled by renewed optimism surrounding a potential trade agreement between the United States and China. President Trump recently stated that a deal is "done," pending final approval, further boosting market sentiment.
The cryptocurrency market is reacting to the potential trade agreement, with Bitcoin holding onto gains from a recent rally. Bitcoin spot Exchange Traded Funds (ETFs) are experiencing inflows, suggesting renewed interest in risk assets. On Tuesday, BTC spot ETFs posted approximately $431 million in net inflows, up from $386 million seen on Monday. Increased interest in Bitcoin-related products could help stabilize the uptrend as it approaches its all-time high of around $111,980.
Bitcoin reached a 24-hour high of nearly $110,300 before retracing to $109,560, according to TradingView data. The potential finalization of tariff deals between the world's two largest trading nations could further reduce global economic uncertainty, potentially leading to more upside for Bitcoin.
The recent trade talks between the United States and China have resulted in a mutual agreement on a framework to uphold the Geneva tariff truce and ease export restrictions, particularly on rare earths. China will remove curbs on the export of rare earth minerals and magnets, while the U.S. will reinstate the export of key components, including semiconductor design software and aircraft parts, to China.
However, some analysts remain cautious. Nexo dispatch analyst Iliya Kalchev noted that Wall Street futures saw a minor decline after Trump's announcement, suggesting that concrete policy shifts remain elusive. Raoul Pal, founder and CEO of Global Macro Investor, suggested that the remaining negotiations might be mere "posturing" for a trade agreement with mainland China.
While Bitcoin's price experienced a temporary dip to $102,000 following a previous easing of US-China tariffs, the overall trend remains positive. The current steady demand for Bitcoin, coupled with substantial inflows into US spot Bitcoin ETFs, indicates strong institutional adoption, further supporting the price.
