China,US Cut Tariffs,Bitcoin Nears $105,000

In a significant move for global markets, China has announced a reduction in tariffs on U.S. goods from 125% to 10%, while the U.S. will reciprocate by cutting its tariffs on Chinese products from 145% to 30%. These tariff reductions are set to remain in effect for the next 90 days, providing both nations with a window for further trade negotiations.

While global equities and commodities responded positively to the news, the crypto market showed a more subdued reaction. Bitcoin, however, maintained its position above the critical $104,000 level and is steadily approaching the $105,000 mark. Analysts noted that Bitcoin had already begun its rally prior to this announcement, suggesting that the news could act as a catalyst for the next upward movement.

According to an analyst, Bitcoin is currently around day 915 of its typical 1,100-day bull market cycle. Historically, the most significant gains tend to occur between days 1,000 and 1,100, indicating that a parabolic move could be imminent if past patterns hold true.

Technical indicators also support a bullish outlook for Bitcoin. The weekly MACD has turned green, a historically bullish signal that last occurred in Q4 2024, just before Bitcoin surged higher. Additionally, the weekly RSI remains far from overbought levels, suggesting there is still room for the rally to continue.

Another notable development is the ongoing decline in Bitcoin dominance, a sign that traders are shifting capital into altcoins. Memecoins, in particular, are experiencing a resurgence. In the last 24 hours, some tokens have jumped 10–30%, echoing the explosive memecoin-led rallies of late 2023. The question now is whether these tokens will continue to lead the market in this cycle.

Adding to the bullish sentiment, the U.S. is set to release its CPI inflation data, a key event that could influence both equity and crypto markets. Additionally, U.S. Vice President is scheduled to speak at a major Bitcoin conference, further highlighting the growing interest and potential impact of cryptocurrencies on global financial markets.