Bitcoin Surges 1.56% Amid U.S.-China Trade Deal Hopes

Bitcoin (BTC), the leading digital currency, has received a significant trigger that could propel it to new all-time highs (ATH) if the buying momentum is sustained. Michael van de Poppe, a prominent crypto enthusiast, highlighted this development in a recent post shared with the community.

The broader financial market is showing positive sentiment due to indications of a trade deal between the U.S. and China. This suggests that the global market may experience reduced tension and improved trade relations. Following negotiations over the weekend, both countries have agreed to lower tariffs to 30% for 90 days until a further review is completed. This development could improve the outlook for the broader financial market and benefit risk assets like Bitcoin.

The macroeconomic environment might see a reduction in inflation rates, lower interest rates, and general market stability. As concerns over tariffs ease, the global market is likely to see a calmer investor push. Such a scenario might favor Bitcoin to rise toward new peaks that could see it surpass the ATH of $109,114.88 it attained on Jan. 19, 2025. The asset has already achieved a new ATH against the NASDAQ.

Interestingly, Bitcoin reached a high of $105,747.45 momentarily in the last 24 hours before witnessing a correction. As of the latest update, Bitcoin is trading at $105,219, reflecting a 1.56% increase in the period under consideration. Despite the correction, investors remain actively engaged, suggesting that traders are continuing to accumulate BTC as many anticipate an upward trajectory.

Institutional players are also betting big on Bitcoin. An investment bank has expanded its portfolio with 30.8 million shares of Bitcoin ETF worth $1.4 billion. This investment was made via BlackRock’s IBIT exchange-traded fund (ETF), making the investment bank the largest holder in the asset manager’s firm. This move underscores the growing institutional interest in Bitcoin and its potential for future growth.

According to van de Poppe, Bitcoin is likely to trade sideways before breaking higher. He also expects altcoins to outperform BTC in the short term. As the market awaits this prediction, the overall sentiment remains bullish, with many investors and analysts optimistic about Bitcoin's potential to retest its ATH.