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Bitcoin Approaches New Peak After US-China Agreement

Bitcoin opened the week strongly, climbing nearly to $106,000 on Monday morning. Today’s jump brought bitcoin a step closer to the January high of 109,356 dollars, adding new momentum to the largest cryptocurrency. This surge comes at a time when the BBC reports confirmation of progress in US-China trade negotiations, with US Treasury Secretary Scott Bessent announcing a 90-day pause.

– After strong discussions, the US and China have agreed to a 90-day pause on tariffs, meaning both sides will reduce their tariffs by 115 percent – stated Bessent.

The US will reduce tariffs on Chinese goods from 145 to 30 percent, while China will lower tariffs on US goods from 125 to ten percent for 90 days. This move also coincided with a risky environment in the markets. Gold fell 1.4 percent to $3,278 per ounce, as optimism around US-China trade negotiations affected demand for safe havens. Meanwhile, WTI crude oil futures rose 1.5 percent, extending a multi-day rally.

The price action of bitcoin reflects this macro rotation, tracking the rise alongside oil and stocks while decoupling from gold. This pattern has emerged during a period of reduced risk aversion, suggesting that traders are reclassifying bitcoin as a beta-macro asset rather than a defensive hedge. Inflows into bitcoin ETFs also remain a key driver. According to data collected by Farside Investors, cumulative inflow through spot bitcoin ETFs has surpassed $41 billion, with $321 million in inflows on Friday. The products are absorbing bitcoin at rates six times higher than the current mining issuance. These inflows intensify price pressure, especially during periods of low liquidity when order book depth is limited.

The broader context reflects improved macro sentiment. Media reports indicate that China has now confirmed the suspension of tariff countermeasures, helping to ease investor concerns regarding tariffs and global demand. This week’s rise followed bitcoin’s recovery above $100,000 last week, when renewed inflows and improved sentiment erased the April decline due to tariff policy. Traders now expect sustainable momentum as the largest cryptocurrency approaches previous highs.

Monday’s activity places bitcoin back near the upper limit of its range for 2025. Whether flows and macro conditions can support sustainable movement above the January high will likely depend on upcoming catalysts, including the US Consumer Price Index (CPI) report on Tuesday and comments from the Federal Reserve. For now, bitcoin’s return to $105,000 reaffirms its position at the forefront of risk appetite in global markets.