Source: Cointelegraph
Original: “Bitcoin (BTC) Hits New All-Time High of $109,000 as Trade War Tensions Ease”
Bitcoin (BTC) reaches a historic high following the US-China temporary trade agreement, easing macroeconomic concerns.
On May 21, Bitcoin (BTC) broke through to a historic high of $109,400, with TradingView data showing an increase of over 26% in the past month. This significant breakthrough occurred nine days after the White House announced a 90-day trade agreement between the US and China on May 12, which lowered import tariffs to 10%, effectively boosting market confidence.
Aurelie Barthere, chief research analyst at a crypto intelligence platform, told Cointelegraph that the 90-day tariff suspension and the cooperative tone in negotiations eliminated the risk of a "sudden escalation," significantly impacting the risk appetite of both traditional and cryptocurrency investors.
US President Trump's reciprocal tariffs are seen as the biggest macroeconomic risk factor threatening traditional stock markets and the cryptocurrency market by 2025.
Bitcoin briefly fell to its lowest point of the year at $74,434 on April 7, just five days after Trump announced the implementation of reciprocal import tariffs on April 2. This news shocked global markets, leading to a loss of over $5 trillion in market capitalization for the S&P 500 index, marking the largest single-day drop in history.
Michaël van de Poppe, founder of MN Consulting, told Cointelegraph at the time that Bitcoin began to recover on April 9, following Trump's "liberation day," which marked the peak of uncertainty for market participants.
According to Jag Kooner, head of derivatives at Bitfinex, Bitcoin "opened May in an almost perfect position, stemming from a rare combination of geopolitical easing, improved regulatory environment, and favorable macroeconomic factors."
"The Russia-Ukraine ceasefire negotiations have alleviated one of the major sources of geopolitical volatility over the past two years," Kooner told Cointelegraph, adding:
"This easing has not triggered a withdrawal of funds from Bitcoin—something that typically occurs when risks diminish—but rather released a rotation of risk appetite. As geopolitical hedging demand decreases while market liquidity remains ample, we observe funds rotating into Bitcoin and high-beta tech stocks."
This rotation of funds reflects a "gradually maturing market narrative," as "Bitcoin is no longer just a panic hedging tool—it is increasingly becoming a high-confidence risk asset during periods of macroeconomic stability," Kooner stated.
Russia and Ukraine "will immediately begin negotiations on a ceasefire and, more importantly, on ending the war," Trump summarized the content of his two-hour call with Russian President Putin in a post on the X platform on May 19.
According to Kooner, funding rates need to remain neutral and the open interest stable to form a "continuity layout" that could push Bitcoin to break through the $114,000 to $120,000 range, with this upward trend potentially triggered by any "macroeconomic factors or regulatory policy changes."
Other market analysts predict that Bitcoin's price will break through the $130,000 mark by the end of 2025, based on the high correlation between Bitcoin and global money supply.
Jamie Coutts, chief cryptocurrency analyst at Real Vision, predicts that the expanding money supply, driven by the continuous devaluation of fiat currency, could push Bitcoin's price above $132,000 by the end of the year due to increased investor demand.
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