Bitcoin Surges 3% to $103,000 as Trade Tensions Fuel Crypto Demand

BTSE Exchange COO Jeff Mei has highlighted the growing connection between monetary policy and digital asset flows, as trade tensions evolve globally. Mei believes that the easing of tariff measures could alleviate inflation expectations, potentially prompting the Federal Reserve to cut interest rates sooner than anticipated. Such rate cuts, according to Mei, would bolster demand for Bitcoin (BTC) in the crypto markets, creating a favorable environment for digital asset growth and innovation. This policy landscape could direct more capital into digital assets, thereby supporting Bitcoin’s price trajectory.

Geopolitical shifts, such as the US-UK trade deal and the easing of rhetoric towards China, have contributed to a surge in confidence within the crypto market. Investors have interpreted these developments as signs of improved global stability, leading to increased risk-taking and a rise in crypto inflows. Mei directly links these geopolitical changes to the growing demand for Bitcoin as a safe hedge, noting that both retail and institutional investors are increasingly turning to BTC. This shift has raised market confidence, illustrating the impact of policy changes on digital assets.

Mei’s analysis comes at a time when Bitcoin has surpassed a significant price milestone, reaching above $100,000. This rise is attributed to both technical momentum and broader macroeconomic shifts. The growing institutional backing and investor interest have deepened the liquidity of the crypto market. Mei emphasizes that regulatory changes and economic diplomacy play a crucial role in influencing asset movements, leading to increased BTC demand in recent weeks. He views emerging trade policies as catalysts for the maturation of the crypto market, driven by clear and measurable market trends.

On May 10, Bitcoin maintained stability near $103,000 as markets digested new trade comments from President Trump. Trump announced a permanent 10 percent tariff baseline on all imports, with exceptions only in special cases. Despite economists’ warnings about potential inflation, crypto prices remained steady. Traders focused more on the Federal Reserve’s rate decisions, highlighting the new approach to simplify global trade negotiations. Later that day, Trump suggested an 80 percent tariff on Chinese goods, further intensifying his tough stance on China. Traditional sectors reacted cautiously, while investors turned to crypto as an alternative asset class, noting an uptick in BTC demand following the announcement. This surge underscores crypto’s role as a hedge against trade policy risks, with economic forecasts now factoring in added inflation from trade barriers.

Trump’s fluctuating messages on trade exceptions created uncertainty among investors, promising new deals while maintaining steep tariffs on China. This back-and-forth challenged traditional risk models, but crypto markets remained relatively stable. Traders observed that digital assets often thrive under policy uncertainty, with DeFi projects attracting fresh interest. These developments further solidify crypto’s independent market position, as resilience improves with diversified holdings. Protectionist policies may increase global inflation risks, but the crypto market’s response highlights its growing maturity and independence from traditional financial markets.

Looking ahead, high-level trade talks in Switzerland and the Federal Reserve’s interest rate decisions will shape global liquidity trends. Market participants closely monitor these developments, expecting continued volatility around trade and monetary shifts. This outlook may spur another surge in BTC demand, with fresh capital flowing into digital assets. Strong crypto market liquidity could persist beyond current headlines, with policy clarity remaining key for sustained growth. Mei’s insights underscore the evolving relationship between monetary policy, geopolitical shifts, and the demand for digital assets, particularly Bitcoin.