Bitcoin Surges 1.7% to $105,705 on US-China Trade Progress

Bitcoin experienced a significant surge in early Monday trading, climbing 1.7% to reach $105,705. This rally brought the cryptocurrency to its highest level since January’s all-time high of $109,356, marking a fresh momentum following a month of sideways movement. The one-hour candle, printed between 07:00 and 08:00 UTC, carried Bitcoin from approximately $103,200 to just under $106,000, putting it within 4% of price discovery levels. However, it has retraced slightly to $104,700 as of press time.

The rally coincided with progress in US-China trade negotiations, with both sides agreeing to a 90-day pause on “reciprocal” tariffs, meaning both sides will reduce their tariffs by 115%. This move helped calm investor concerns over tariffs and global demand, supporting risk assets and historically favoring crypto price appreciation. The broader context reflects the improved macro sentiment, with the US dollar trading relatively flat and yields hovering near recent lows.

Meanwhile, the broader markets also saw a risk-on environment. Spot gold fell 1.4% on the session, retreating to $3,278 per ounce as optimism surrounding US-China trade talks weighed on safe-haven demand. WTI crude futures climbed 1.5%, extending a multi-day rally. Bitcoin’s price action mirrored this macro rotation, tracking higher alongside oil and equities while decoupling from gold. This pattern has emerged during periods of reduced risk aversion, suggesting traders are reclassifying Bitcoin as a beta-macro asset rather than a defensive hedge.

Flows into Bitcoin spot exchange-traded funds also remain a key driver. Cumulative inflows across US-listed spot Bitcoin ETFs crossed $41 billion, with $321 million of inflows on Friday. The products are absorbing BTC at rates six times higher than the current mining issuance. These inflows reinforce upward price pressure, particularly during low-liquidity periods when order book depth is limited.

Technical indicators point to near-term resistance. The relative strength index (RSI) on the daily chart sits at 73, in overbought territory, and previous moves above 105k have failed to hold. Price action around the $106,000 level could prove decisive, with bids stacked slightly below and limit sells beginning to populate overhead. The $105,000 level has psychological weight, but it remains a technical midpoint between resistance at $106,400 and support near $102,400.

Monday’s activity places Bitcoin back near the upper boundary of its 2025 range. Whether flows and macro conditions can support a sustained move beyond the January high will likely depend on upcoming catalysts, including Tuesday’s US CPI report and Federal Reserve commentary. For now, Bitcoin’s return to $105,000 reaffirms its position at the forefront of risk appetite in global markets.