"Bitcoin Surges Past $100K as US-China Tariffs Ease"
1min readUS-China Tariffs Push Bitcoin Below $100K, Analysts Eye All-Time High
US-China trade tensions have escalated, with the US imposing new tariffs on Chinese goods. In response, China has retaliated with its own tariffs on US products. This geopolitical uncertainty has led to a sell-off in global markets, including cryptocurrencies. Bitcoin, the world's largest cryptocurrency by market cap, has been particularly affected, dropping to a three-week low and briefly touching $92,000 over the weekend.
However, Bitcoin has since bounced back, climbing above $101,000 on Monday, fueled by renewed investor optimism as US President Donald Trump delayed tariffs on Canada and Mexico. This policy shift has triggered a surge in buying activity among American investors, pushing the Coinbase Premium Index to its highest level of the year.
Bitcoin's Coinbase Premium Index currently sits at 0.12, marking a 700% surge following confirmation that tariffs on Canada and Mexico would be delayed for another month. This move has reignited buying pressure among American investors, who swiftly resumed accumulating Bitcoin. This has driven the Coinbase Premium Index to its highest level since the beginning of the year.
Bitcoin's Coinbase Premium Index measures the difference between coin prices on Coinbase and Binance. When its value grows above zero, it suggests significant buying activity by US-based investors on Coinbase. Conversely, when it declines and dips into the negative territory, it signals less trading activity on the US-based exchange.
A positive Coinbase Premium Index is a bullish signal for BTC's price. This means the coin is trading at a higher price on Coinbase as demand from US-based investors strengthens. Increased buying pressure from American institutional and retail traders like this often drives BTC's price higher, pushing the market upward.
Moreover, in a recent report, pseudonymous CryptoQuant analyst Avocado_onchain finds that BTC's Short-Term Spent Output Profit Ratio (STH-SOPR) currently suggests that the coin's price corrections are becoming shallower. This indicates stronger market confidence among short-term investors.
BTC's STH-SOPR gauges the profitability of its short-term holders. It offers insights into whether investors who have held the coin for three to six months are 
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